Concern over truck collapse
Unions are worried for jobs after Australia's largest cold chain refrigeration logistics company entered voluntary administration this week.
The National Transport Union has expressed deep concern over the recent collapse of Scott's Refrigerated Logistics, Australia's largest cold chain refrigeration logistics company.
The company, which has Coles and Aldi among its clients, has been forced to enter voluntary administration with KordaMentha appointed as the receivers.
With the fate of approximately 1,500 workers now hanging in the balance, the Transport Workers Union (TWU) national secretary, Michael Kaine, has pointed to the razor-thin margins being experienced by transport companies like Scott's as a significant contributing factor.
Despite this, KordaMentha partner Scott Langdon has said that the business will continue to operate as usual for the time being and that workers will be paid on time, with a sale process now underway to find a new owner for the business.
Coles has expressed support for the company and its workers, and the TWU is working closely with KordaMentha to ensure workers are prioritised throughout the sale process.
While Woolworths is not believed to use Scott's for delivery of its produce, the impact of the company's collapse on the wider logistics sector in Australia is as yet unclear.
Aldi has not yet commented on the situation.
According to the company's website, Scott's has warehouse facilities in all Australian mainland state capital cities with depots in many other regional centres.