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

Transport workers will hold protests outside Aldi locations across Australia tomorrow following the collapse of a major trucking company that supplied supermarkets. 

Scott’s Refrigerated Logistics has gone out of business after administrators KordaMentha were unable to find a buyer for the company, leaving 1,500 staff unemployed. 

Transport Workers Union national secretary Michael Kaine said the collapse was a ‘tragedy of a supply chain crisis caused by wealthy clients like Aldi squeezing transport contracts and profiting off the razor-thin margins of operators’.

Aldi, which accounted for about 3 per cent of Scott’s business, has rejected the claims.

‘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.

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The TWU has previously protested outside Aldi stores over contracts for trucking companies

National Secretary Michael Kaine (pictured) said the collapse of Scott’s Refrigerated Logistics was a warning for supermarkets

Aldi has refuted the claims by the TWU that it puts stress on some suppliers by demanding thin margins (file image)

Mr Kaine is also calling on the government to do more to support workers by bringing in transport reforms to make contracts more favourable to suppliers.

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

‘Scott’s Refrigerated Logistics is a major casualty of an industry-wide crisis that’s pushing operators and drivers to the brink, which will have an enormous impact on our essential grocery supply chains,’ 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.’

‘Last year the federal government committed to setting enforceable minimum standards in transport. The transport industry is at crisis point – we need the federal parliament to urgently pass this reform.’

KordaMentha is hoping to sell the Scott’s fleet of 500 trucks and its 24 warehouses to help pay off it’s debts.

The company’s 1,500 staff have been told to keep turning up to work and are yet to be given end dates for their employment.

The company will owe worker’s about $50million in entitlements – which taxpayers will likely cover under the federal government’s redundancy scheme.

The TWU wants companies such as Linfox, ACFS, Ron Finemore Transport and FBT Transwest to step up and find positions for Scott’s workers.

Team Global Express, headed by former Australia Post boss Christine Holgate, said it is already having ‘constructive conversations’ with the TWU about hiring staff.

Supermarket chain Aldi accounted for about 3 per cent of Scott’s business 

The TWU will protest outside Aldi locations in almost every capital city on Tuesday

The union is demanding the government bring in reforms to make contracts more favourable to suppliers