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Fruit and veg firms agree 2-year standstill on transport rates
Page 32
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• A joint effort to combat inflation in transport charges was agreed in Paddock Wood last week between the Mack Organisation and Henley Transport, which is responsible for the inland carriage of some 40,000 tons of fruit and vegetables which pass through the Mack distribution centre and factory at Paddock Wood, Kent.
In return for a guaranteed productivity deal involving additional throughput etc, together with co-ordinated basic load deliveries, Henley Transport has agreed that its transport rates with the Mack Organisation. which were negotiated in June 1970, will now remain in force until the end of June 1972, giving a full two-year standstill.
The Mack Organisation has voluntarily agreed to stand a penalty payment should the additional throughput envisaged fall short of the target, but if this clause is invoked, the responsibility for the payment will only fall upon Mack and not its growers and buyers.
"This will prove a most interesting experiment", said Mr Percy Henley, "I feel that this new arrangement is the first step in overcoming our problems of costings in the ligtht of rising wage demands and the increased prices of oils and fuels, etc".