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Fury at Sainsbury's depot control move
Page 22
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Supermarket hands distribution centre control to Exel provoking union anger. Guy Sheppard reports.
SUPERMARKET GIANT Sainsbury's has outraged union leaders by handing control of a key distribution centre to Exel.
The decision to end 35 years of in-house transport and warehousing at Charlton, East London, is part of a wide-ranging shake-up in the supermarket's distribution network following the appointment of former Safeway distribution boss Lawrence Christensen to its board.
The Transport & General Workers Union, representing around 100 drivers and 400 warehouse and administration staff at Charlton, says the decision is a total surprise.
Brian Revell, T&G national organiser for food and agriculture, says members felt betrayed and furious. "It looks very much as if this is an agenda for cuts."
Sainsbury's logistics director Dave King says Exel already operates its two other distribution sites in the South East at Allington and Northfieet. "By having one operator to manage all three, we will be able to create an effective hub which will allow us to improve our delivery service to stores."
Clive Black, retail analyst at investment group Shore Capital, says Sainsbury's distribution network has been steadily improving since last year after an investment programme failed to deliver the expected benefits. "It's part of the process of making the operation more efficient."
Nearly half Sainsbury's 19 distribution depots are in-house operations. Exel also controls depots in Rotherham, Scotland and Bristol.