Aggregate subbies to face another pay delay
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By Derren Hayes SUBCONTRACTED hauliers working for Aggregate Industries will have to stomach not being paid in December after the company announced it is to take a payment holiday for a third year running.
The decision by the construction materials giant to delay payments again will leave about 2,500 subcontractors — many of them owner-drivers who work solely for Aggregate Industries — short of cash over Christmas. The firm informed hauliers last week that payments expected on 10 December for work done in October would be made on 7 January, along with November's payment and a 1% 'loyalty bonus'. Last year, it justified the move by saying it was operating in "unprecedented difficult conditions".
This year, Aggregate Industries chief financial officer John Bowater said: "We've been working with subcontractors since the beginning of 2012 to agree the payment schedule for the year. Given the level of dialogue that we have with suppliers, it's surprising to see this raised."
A number of the subcontractors who are angry with the company's stance have contacted CM One tipper operator, who is owed several thousand pounds for work carried out in October, described it as a "despicable" move.
"You're expecting that money to come in. It wrecks your cashflow. I'll now have to borrow money over Christmas," he said.
Another, Howard Shade of Howard Shade Haulage, said: "I was expecting to be paid at the beginning of December, not January. How can a big company get away with 90-day payments?"
Jack Semple, director of policy at the Road Haulage Association, said: "It is not good business practice, but not uncommon. Hauliers are ending up acting as banks to much larger companies — 60 days [payment terms] seems to have become the norm, but it is much too long when you are paying up front for fuel and road tax."
HARGREAVES RATE RISE PAYS DIVIDENDS Hargreaves Transport has recruited 25 subcontract hauliers after announcing a 3% rise in rates last month.
General manager Andrew Wolrich said the rate rise had created a lot of interest: "Some thought 3% wasn't enough and I agree with them, but it is at about the limit we think we can recover from customers. The extra trucks have come from a mix of sources."