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'Domino effect' after store collapse
Page 7
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By Joanna Bourke WITH DHL EXCEL Supply Chain and Wincanton being hit by retailers MFI and Woolworths going into administration. the National Union of Rail. Maritime and Transport Workers (RMT) says the Government must intervene before the logistics chain crumbles.
DHL has confirmed its Thorne Distribution Centre in Yorkshire — where 350 staff are based — may be affected by MFTs administration, and Wincanton says redundancies are expected for sonic, of its 158 dedicated Woolworths staff at Castleton and Swindon.
RMT general secretary Bob Crow argues the Government must help the retail sector financially in the same way it has helped failing banks.
He claims Woolworths' collapse "will also have a domino effect that will threaten jobs in the transport and road freight sector".
Under its five-year contract with MET. DHL was to investf.11.6m of its own capital to run the furniture firm's Thorne Distribution Centre.
Since the retailers went into administration on 26 November, DHL has vowed to keep the staff in question informed.
Wincanton is liaising with the administrators of Woolworths to track any developments that will affect its workforce.
A Wincanton spokesman adds that in the case of redundancy. the company will attempt to redeploy as many employees as possible across the network.