The TWU has revealed the reason behind Scott’s collapse, calling for companies to keep the transport and freight industry fair
The Transport Workers’ Union (TWU) says that administrators from the Scott’s Refrigerated Logistics collapse have confirmed that uncommercial customer arrangements led to the demise of the freight giant.
The TWU says a Scott’s creditors’ meeting revealed the cause, saying that unsustainable contracts from wealthy clients were a leading cause in its downfall.
Administrators say ‘uncommercial customer arrangements as a result of intense market competition’ was a key reason for the company going into administration, alongside pandemic and natural disaster impacts and the costs of maintaining an ageing fleet.
The TWU says Scott’s is the latest casualty of the supply chain crisis driven by wealthy retailers and other clients, with thin margins fuelling pressure for drivers and operators to delay maintenance, speed and drive fatigued to make ends meet.
TWU Secretary Michael Kaine says the information from the Scott’s meeting highlights the need for clients to urgently commit to principles emphasising fair, safe and sustainable supply chains.
“What we now know as an absolute certainty is that 1500 workers have lost their jobs because of competition driven by companies who rake in profits while pushing operators like Scott’s to the brink,” Kaine says.
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“This intense and destructive competition between operators in a race to the bottom is a recipe for more deaths and more collapses like Scott’s.
“Drivers and operators are being left to fend for themselves amidst natural disasters, the pandemic and skyrocketing operating and maintenance costs because wealthy clients refuse to take responsibility for fair, safe and sustainable supply chains.
“The federal government has indicated that it will introduce legislation for a fairer way forward for the transport industry and federal parliament must back in these reforms. But the Scott’s creditors’ meeting confirms that companies must immediately commit to lifting standards in transport before the industry reaches breaking point.”
The TWU is working with companies including Global Express, Linfox, ACFS, Ron Finemore Transport, Pacific National and FBT Transwest to maximise redeployment opportunities for members with the company now ceasing operations.