Clients must be accountable for fair, safe and sustainable transport contracts

Truck drivers held protests outside Aldi locations across Australia following the collapse of Scott’s Refrigerated Logistics to demand the supermarket sign a supply chain accountability charter, which rivals that of Coles and Woolworths.

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

“Unlike Coles and Woolworths, 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.”

Aldi hit back at the TWU protests and rejected claims that they and other major retailers are putting pressure on the operators and drivers transporting their goods.

In a statement Aldi said, “Our business model does not involve squeezing suppliers. Aldi sets clear expectations with our suppliers to ensure there is correct payment of wages, vehicles are maintained, delivery timeframes are realistic and achievable and drivers take breaks as required by legislation. Aldi understands that it accounted for just three per cent of Scott’s business.

Michael Kaine said retailers reported booming profits while transport operators and drivers in their supply chains were either going broke or under pressure to cut safety measures.

In 2020, Aldi lost a long-running legal claim against the TWU over a safety and wages campaign, in a case the union said would ‘gag’ civil society groups’ ability to challenge companies’ practices.

The grocery giant started the litigation in 2017 after the union launched an ad campaign highlighting what it said were safety issues in Aldi’s supply chain driven by the retailer putting the ‘squeeze’ on truck drivers with contracts the union said were poorly-paid.

In conclusion, Justice Flick found the road safety concerns being expressed by the union “were concerns which it genuinely held”. He also ruled the union genuinely believed Aldi could “do more to further the company’s concerns as to road safety”.