Aggregate Industries ‘ruins Christmas again’ for subbies
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By Christopher Walton TIPPER CONTRACTORS working for Aggregate Industries have accused the irm of “ruining Christmas again” , after it conirmed that it would not be paying its subcontractors in December for the second year in a row.
CM understands that subcontractors have been told that payments normally made on 10 December, which account for work done in October, will be deferred until 4 January. Last year it also deferred December payments to January (CM 18 November 2010).
One operator says: “Once again it has withheld December payments. It has ruined our Christmas again.” The construction materials giant says it too is experiencing cashlow issues, as its customers are delaying payments. It has had to extend payment periods to its creditors, including operators, as a result.
John Bowater, deputy chief executive and chief inancial oficer at Aggregate Industries, says: “[We have] worked with hauliers to provide prior-notice brieings, communications support with their inancial institutions and have committed to ensuring they are affected for December only.” He adds that the irm is in support of government initiatives to ensure full payment throughout its supply chain and “it is with regret that we undertake this action” .
One subcontractor in the NorthWest, who had problems with payments last year, tells CM he has declined work with the irm this year because of concerns that cashlow in December would be affected.
The tipper operation at Aggregate Industries is part of its Aggregate Products Division. It has no connection to Norbert Dentressangle’s 4PL service for its Concrete Products Division.