Aldi store protests: Transport Workers Union to picket over Scott’s Refrigerated Transport collapse

Transport workers will protest outside Aldi locations across Australia tomorrow after the collapse of a major transport company that supplied supermarkets.

Scott’s Refrigerated Logistics filed for bankruptcy after managers KordaMentha failed to find a buyer for the company, leaving 1,500 employees out of work.

Transport Workers Union national secretary Michael Kaine said the collapse was a “tragedy of a supply chain crisis caused by wealthy customers like Aldi who squeezed transport contracts and took advantage of operators’ razor-thin margins.”

Aldi, which accounts for about 3 percent of Scott’s sales, has denied the claims.

“Unlike Coles and Woolies, Aldi has refused to sign a supply chain charter with the TWU and instead tried to silence truckers in court, but lost twice,” Kaine said.

Mr Kaine also calls on the government to do more to support workers by implementing transportation reforms to make contracts more favorable to suppliers.

The TWU is holding protests at some Aldi locations in most capital cities on Tuesday, including Sydney, Brisbane, Melbourne, Adelaide and Perth.

“Scott’s Refrigerated Logistics is a key victim of an industry-wide crisis that is pushing operators and drivers to the brink, which will have a huge impact on our vital food supply chains,” said Kaine.

Scott’s is not the first transportation company to be forced out of business by profit-hungry customers at the top of supply chains, and it won’t be the last unless we implement reforms to ensure those customers are accountable for fair, safe and sustainable transport contracts.’

“Last year, the federal government committed to setting enforceable minimum standards in transportation. The transport sector is in a crisis situation – we need the federal parliament to urgently approve this reform.”

KordaMentha hopes to sell Scott’s fleet of 500 trucks and his 24 warehouses to pay off his debts.

The company’s 1,500 employees have been told to continue showing up for work and an end date for their employment has yet to be given.

The company will owe the employee about $50 million in entitlements — which taxpayers will likely cover under the federal government’s redundancy package.

The TWU wants companies like Linfox, ACFS, Ron Finemore Transport and FBT Transwest to step forward and seek positions for Scott’s workers.

Team Global Express, led by former Australia Post boss Christine Holgate, said it is already in “constructive talks” with the TWU about hiring.