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Wincanton drivers' jobs

15th June 1995, Page 7
15th June 1995
Page 7
Page 7, 15th June 1995 — Wincanton drivers' jobs
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at risk in milk shake-up

by Lee Kimber • Up to 100 Wincanton drivers could lose their jobs as the company merges its liquid and food haulage businesses in a bid to cut milk haulage costs.

Wincanton parent Unigate says the cost of milk has risen by 11% since the Government replaced the Milk Marketing Board with the monopolist Milk Marque. At the same time doorstep deliveries are down by 17% a year. The company says this is forcing it to put aside £2.8m to cut inefficient milk haulage routes and merge the business with its food tranSport division.

Wincanton and Unigate were unable to comment this week but the drivers throughout the country are expected to lose out as 1,500 jobs are cut. Around 95 Wincanton drivers could go if the rate of attrition matches Unigate's rival, Northern Foods. It cut 140 drivers' jobs six weeks ago when it shed 2,200 staff at its dairy business.

Analysts say the change to Milk Marque last November has left Wincanton drivers delivering smaller amounts over longer, fragmented routes In its latest financial year Wincanton's profits were unchanged at £22.1m on sales of £335m. At operating profit level its margins actually rose from 13.5% to 15.15% but drivers' jobs will increasingly be squeezed between rising milk prices and falling demand for doorstep deliveries in the South.

Northern Foods chairman Christopher Haskins confirmed the milk haulage sector's difficulties this week. He reported a 35% fall in dairy profits to £57.4m: sales were down 2% to £954.7m.


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