Scott’s RL’s 1200 workers lose jobs ahead of liquidation

The liquidation of Australia’s largest refrigerated logistics company has begun with 1200 out of its 1500-strong workforce losing their jobs.

The liquidation of Scott’s has triggered warnings about a ripple effect on supermarket supply-chain services.

The liquidation of Australia’s largest refrigerated logistics company, Scott’s, has begun with 1200 out of its 1500-strong workforce made redundant on Monday and the remaining 300 employees to help smooth the way for an orderly wind down of the trucking business.

A spokeswoman for the receivers KordaMentha, said Scott’s workforce was informed of the redundancies at 5pm on Monday.

Receiver Scott Langdon thanked the Transport Workers Union for doing an “amazing job” on behalf of Scott’s employees during this very difficult time, advocating hard to secure a future for the company.

But also when it became clear that debts and liabilities meant Scott’s couldn’t be saved, for the union’s support in protecting employees’ interests and finding them new jobs.

KordaMentha confirmed it was in talks with a number of parties interested in employing Scott’s workers in new jobs.

The collapse of Scott’s has shocked the supermarkets and fresh groceries sector and sent ripples through the supply chain.

Scott’s serviced all major supermarkets, delivering food to Coles and Aldi directly, and on behalf of suppliers to Woolworths and IGA.

The demise of the refrigerated trucking company has raised the threat of bottlenecks and a partial breakdown of the supply chain for fresh and frozen food being delivered to the supermarket chains.

Coles – which accounted for 15 per cent of Scott’s business – was arranging other trucking companies to deliver food to its stores late on Friday.

As was Aldi, which accounts for 3 per cent of Scott’s business.

It comes as the collapse of Scott’s has also triggered an increasingly bitter public brawl between the TWU and Aldi.

TWU national secretary Michael Kaine has called on the federal government to deliver “urgent” transport reform, warning “more businesses and lives would be at risk without action”.

But he has also blamed the collapse of Scott’s on what the union has termed wealthy clients like Aldi squeezing transport contracts and profiting off the razor-thin margins of operators”. “Unlike Coles and Woolies, Aldi has refused to sign a supply chain charter with the TWU and instead tried to silence truckies in court – but lost, twice,” Mr Kaine said.

“Scott’s is not the first transport company to be pushed out of the market by profit-hungry clients at the top of supply chains, and it won’t be the last unless we enact reform to ensure those clients are accountable for fair, safe and sustainable transport contracts.

The TWU has staged protests outside Aldi offices.

The German-owned discount supermarket chain Aldi has refuted all allegations made by the TWU saying it was part of an ongoing targeted campaign to discredit Aldi and was both “baseless and damaging”.

“The TWU continues to make unsubstantiated and wildly inaccurate claims about both our supplier partnerships and how seriously we take the safety of our drivers,” an Aldi spokeswoman said.

Aldi has denied the TWU’s claim that it squeezes suppliers, such as Scott’s.

“The Aldi business model does not involve squeezing suppliers. Our low prices are possible thanks to our focus on efficient business process. Aldi sets clear expectations with our suppliers to ensure there is correct payment of wages, vehicles are maintained, delivery time frames are realistic and achievable and drivers take breaks as required by legislation.”

Aldi has also denied claims it has refused to engage with the union.

“We have asked for details to substantiate safety claims made by the TWU and indicated our willingness to meet with the TWU. Most recently, we wrote to the TWU two weeks ago offering to meet with them and are still waiting for a reply. We are proud of our safety credentials and we remain open to dialogue with the TWU, and other representative groups, to learn if there are ways we can improve.

“Aldi engages fairly and professionally with all unions that have coverage of our employees and comply fully with the provisions of the Fair Work Act when dealing with all unions and their rights to access our sites.”