Asda and Sainsbury's chilled food distributor in brink of collapse
news.sky.com/story/asda-and-sainsburys-chille...Posted Sep 21, 2021, 8:28 PM UTC
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news.sky.com
Just think how much worse things would have been under Labour!
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I think you find this is clearly the fault of the last labour government for not getting behind global Britain's 40 new levelled up hospitals as we jabbed our way to victory against the tyrannical hand of our oppressors the EU...
You really can just randomly link words together and generate something which sounds like Boris on one of his more coherent days...
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Boris said it would all be fine, so I am not worried, he wouldn't ever lie.
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Nevertheless, its impending insolvency comes at a sensitive time, with respected industry voices including Ian Wright, the Food and Drink Federation chief executive, warning that shoppers will be confronted by empty shelves during the coming months. [...]
Details of its current financial predicament were unclear on Tuesday, but industry sources cited ongoing issues with driver shortages and wider supply chain costs and challenges were likely to be key factors.
Informal reminder the UK hasn't even begun checking EU goods yet.
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Hope you remembered your sunglasses!
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How on earth has a company with such contracts about to bust? General question that I don’t understand after the past year when weren’t supermarkets making huge profits during the lockdowns?
Reading the article seems to be Brexit mostly?
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Cashflow, lack of it will kill any company.
Distribution is their money maker, if they don't have enough drivers to provide the required turn over all the contracts in the world won't help.
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I was wondering that. Options I thought of were
- They have a fixed price written into the contract and so wage rises have made it unprofitable
- They have penalty clauses and are getting rinsed on those due to lack of drivers
The latter seems more likely but is pure guesswork
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The latter is kind of correct, but there are many things the company could be doing to improve this that they have not.
- old IT software, unreliable software and hardware
- parts of fleet extremely unreliable
- no pay rises so staff now some of the worst payed in the area
- what staff are hired are turned over so that around 75% of office staff have been employed less than 18 months (in my depot at least)
source: i work here
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I work for this company. Chronic incompetency; the company (just at my one depo near DIRFT) has been paying 20 subcontractors+ over £500 a day each for 8 hour days . These subbies are unreliable are best and dangerous at worst, more accidents (had one yesterday drive from Hatfield to Crick with a blown out tire in the middle of the day) - rather than put the wages of the drivers up to what is competitive. Drivers here are paid £12.07 an hour, whereas you can get upwards of 50 grand a year in multiple places no more than 5 or 10 minutes away. The IR35 changes have reduced the amount of agency staff willing to work here. Late percentages are through the roof, so they breach the contract and lose money on the daily, a chronically understaffed and underpaid office and warehouse does not help this on much at all.
A truly rotten company that is falling apart at the seams. I do kind of hope it doesn't go bust though, some good people work here and obviously being my occupation I kind of like the job security of logistics. But hey-ho.
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If Johnson really loves fridges he'll never let it happen.
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I work for this company. Things currently are diabolical, no drivers, no office staff, not enough warehouse staff. No pay rises of note for the vast majority of employees in years. Drivers leaving left right and center due to the company sandbagging on putting the wages up, rotten management down to the core, company deserves to collapse in my definitely-not-bias view - not that I want it to, mind you.
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At this rate, the conservatives are going to end up subsidising more industries than in Jeremy Corbyn's most feverish dreams ..
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