City criticises TDG for 'spoiling rates'
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by Karen Miles • The City has joined small subcontractors in giving its voice to attacking Europe's second largest transport company for "spoiling rates" for the whole industry.
A leading City analyst says Transport Development Group appears to have reduced to "filling up the empty space, where new business should be, with traffic on lower margins".
Another analyst accused the group of seeming to "spoil the whole market by going for low rates and so messing it up for everyone else?
The charges follow complaints by subcontractors offered work by TDG subsidiary Beck & Pollitzer (CM 28 July-3 August). Some have refused to do the work for the rates offered by B&P which is managing a new brewery to off-trade contract with Courage.
A former Courage subcontractor claims B&P is well known for offering "backload terms", sometimes 10%-15% lower than the going rate, to well established subcontractors.
TDG chief executive Alan Cole this week strongly denied subcontractors' and ana lysts' claims: "It's nonsense to say that we are going for low rates. We haven't set out our stall as rate cutters. We are quality players—just ask our customers."
Beck & Pollitzer also points out that it will of rate cutting. use 21 out of 25 sub
Cole: denies policy