The TWU has partnered with KordaMentha to ensure workers are treated fairly throughout the Scott’s administration process
The Transport Workers’ Union (TWU) is calling for transport reform following the news that Australia’s largest cold chain operator, Scott’s Refrigerated Logistics, entered voluntary administration.
The TWU is working with KordaMentha to ensure transport workers are prioritised throughout the administration process.
The union says the operator is the largest of many casualties of cost-cutting in transport supply chains, which puts safety and businesses at risk.
The TWU says one of Scott’s clients in Aldi is estimated to have enjoyed an 8.4 per cent profit margin in 2022, which is far higher than other Australian supermarkets.
Aldi has refuted this, saying this statement is “categorically unture, baseless and damaging”.
“We refute this commentary from the TWU in its entirety,” an Aldi Australia spokesperson told ATN.
“The supermarket supply chains rely on many interdependent partnerships and despite the challenges presented with this news, we’re working with our suppliers and logistics partners to minimise impact to Aldi customers.”
TWU National Secretary Michael Kaine says a decade of government inaction on the crisis in transport left operators fending for themselves in a broken market.
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“This is another tragedy of the untrammelled commercial power at the top of transport supply chains. Retailers are reaping the gains from razor-thin margins while operators and drivers collapse under the strain,” Kaine says.
“The TWU is working with KordaMentha to ensure workers are prioritised in what we hope will be a sale to a responsible buyer.
“Sadly for our union, almost a decade of a government which preferred a bystander approach of ‘leave it to the market’ has meant that we are experienced in ensuring workers are prioritised through an administration process.
“We urgently need reform in transport to ensure wealthy clients at the top of supply chains are accountable for fair, safe and sustainable transport operations for the freight of their goods.
“The federal government has committed to setting enforceable standards in transport. We urge the passing of this reform through federal parliament as soon as possible to save lives and businesses in transport.”