Up to quarter of supermarket milk deliveries missed due to driver shortages, says dairy giant

Published

3 years ago

July 30, 2021

admin

Up to a quarter of supermarket milk deliveries by the UK’s biggest dairy supplier have been unable to get through because of a shortage of lorry drivers.

Speaking to Sky News, managing director of Arla Foods UK Ash Amirahmadi warned of a “summer of disruption” unless bold action is taken by the government to tackle the industry-wide problem, blamed on the coronavirus crisis and Brexit.

The dairy giant, which supplies milk to about 2,400 stores each day in the UK, had on average failed to deliver to 10% of outlets due to a lack of drivers, although this had risen to a quarter – some 600 shops – at weekends.

“Of course that’s something that is a concern,” said Mr Amirahmadi.

As well as “significantly” increasing driver pay, Arla had also offered a £2,000 signing-on bonus, similar to other businesses, like Tesco.

In addition, the company was working with retailers to try and reduce the demand on the supply network.

But Mr Amirahmadi said: “Unfortunately, even with all those things in place we are still not able to make all of our deliveries.”

While a recent move to extend hauliers’ working hours by an hour would help, he added: “We don’t think that is the solution because it doesn’t sort the underlying issue, which is the shortage of drivers.”

Confirming the company was in discussions with the government, Mr Amirahmadi said: “We need to recognise it is a structural issue, that what we have at the moment is an acute driver shortage.

“Therefore, unless we take bold action on that we could be facing a summer disruption going into the next couple of months.”

Mr Amirahmadi highlighted the need to increase HGV driver testing and temporary visa changes, to deal with the shortage in the short-term.

In the longer term, Arla were committed to drawing on “homegrown talent” through its own training schemes, including apprenticeships.

Dr Judith Bryans, chief executive of the industry body Dairy UK, said: “The UK dairy supply chain has seen quite a bit of disruption as a result of on-going shortages of HGV drivers, causing difficulties for businesses in terms of transporting products.”

Earlier this month, Transport Secretary Grant Shapps announced a consultation to ease driver qualification requirements as part of a package of measures designed to tackle the issue, in addition to the temporary extension of lorry drivers’ working hours from nine to 10 hours a day.

However, the Road Haulage Association, which has said it believes there is a shortage of 100,000 drivers, described the relaxation as a “sticking plaster”.

A Department for Transport spokesman said: “We recently announced a package of measures to help tackle the HGV driver shortage, including plans to streamline the process for new drivers to gain their HGV licence and to increase the number of tests able to be conducted.

“We have also temporarily relaxed drivers’ hours rules to allow HGV drivers to make slightly longer journeys, but these must only be used where necessary and must not compromise driver safety.

“We have no plans to introduce a short-term visa for HGV drivers. Employers should invest in our domestic workforce instead of relying on labour from abroad.”

Business

Apollo-owned ABC Technologies in £800m raid on London-listed auto supplier

Published

8 hours ago

September 13, 2024

admin

Apollo-owned ABC Technologies in £800m raid on London-listed auto supplier

A London-listed automotive components supplier has become the latest British-based company to draw overseas takeover interest after receiving a series of offers from a Canadian rival.

Sky News has learnt that TI Fluid Systems has received at least two bid proposals from ABC Technologies Holdings, a Canadian competitor.

City sources said on Friday evening that the second of the offers had valued TI Fluid Systems at 180p-a-share – a significant premium to its closing price on Friday of 145.8p.

Shares in the company rose by more than 7% on Friday amid market rumours about a potential bid.

TI Fluid Systems floated in London in October 2017 at a price of 255p-a-share.

One source said the company’s board, which is chaired by Tim Cobbold, a former boss of banknote printer De La Rue, was unlikely to seriously consider a proposal unless it was pitched at closer to 200p-a-share.

Both parties are likely to come under pressure from the Takeover Panel to confirm the interest from ABC Technologies over the weekend, or at the latest on Monday morning.

TI Fluid Systems operates from 98 manufacturing locations in 27 countries.

It specialises in the production of fluid handling and thermal management systems.

The company traces its roots back to 1922, when it began trading as Harry Bundy and Company.

A string of London-listed companies have agreed to takeovers by foreign or private equity bidders this year, the latest of which came this week when Centamin, a gold miner, accepted a £1.9bn offer from AngloGold Ashanti of South Africa.

On Friday, Apollo and TI Fluid Systems both declined to comment.

Business

Mail Online and Sun take axe to US-based workforces

Published

15 hours ago

September 13, 2024

admin

Mail Online and Sun take axe to US-based workforces

Two of Britain’s biggest newspaper publishers are taking the axe to their US workforces, slashing scores of jobs in the latest evidence of mounting financial pressures across the media sector.

Sky News has learnt that News UK, the publisher of The Sun, and DMGT, owner of the Daily Mail, have this week announced sweeping internal restructurings in their digital operations on the other side of the Atlantic.

Industry sources said on Friday the two companies were cutting significant numbers of employees in the US, where The Sun launched an American edition online four years ago.

By coincidence, the two sets of cutbacks are understood to have been launched on the same day.

DMGT launched Dailymail.com in the US in 2010, and is thought to employ about 200 people there, a reduction from roughly 260 seven years ago.

One insider said the DMGT layoffs represented just under 10% of its US workforce, while the proportion of The Sun’s US staff being let go is understood to be much higher.

A source close to News UK, which is part of Rupert Murdoch’s media empire, denied it was as high as 80%.

The company is thought to employ about 100 people on The Sun’s US platform.

One media analyst said the redundancies, which have not been announced publicly, were a reflection of the “intense” pressure on news media brands, even in areas where their digital audiences had gained significant momentum.

A spokesperson for The Sun said: “The US Sun has been an incredibly successful business, driving billions of page views.

“However the digital landscape has experienced seismic change in the last 12 months and we need to reset the strategy and resize the team to secure the long term, sustainable future for The Sun’s business in the US.”

A spokesperson for Associated Newspapers, the DMGT subsidiary which publishes the Daily Mail, said in response to an enquiry from Sky News: “We have made a small number of job cuts in some areas of our US editorial department.

“This was a difficult, but necessary decision, which will enable us to continue to invest in areas where we can grow our audience.”

Business

Investigation into potential second Post Office scandal will be ‘positive’ for sub-postmasters

Published

16 hours ago

September 13, 2024

admin

Investigation into potential second Post Office scandal will be 'positive' for sub-postmasters

The lawyer for those affected by Capture software predating the faulty Horizon system says his “belief” is that the “report is going to be positive”.

Neil Hudgell, a solicitor at Hudgell Solicitors, is representing over 40 former sub-postmasters who used Capture in the 1990s.

Dozens who used it claim they were wrongfully accused of stealing money from their Post Office branches, similar to the Horizon scandal.

Mr Hudgell told Sky News: “We need to see the report, we need to consider options.”

“But clearly, if it is a positive report”, he added, “and we are going to start talking about exoneration and compensation, then we need a process to reflect the ageing demographic of those involved, ie it needs to be quick, and we need to figure out what the quickest route is”.

Capture was introduced to some branches from 1992 – and was the predecessor to the faulty Horizon accounting software.

Under Horizon, hundreds of sub-postmasters were wrongly prosecuted between 1999 and 2015.

What’s happening with the report?

An independent investigation into Capture began in the summer and has now concluded.

It was carried out by risk advisory and financial solutions company Kroll.

The report has now been passed to the Department for Business and Trade.

Former sub-postmaster Steve Marston believes he was falsely convicted of theft due to “glitches” in Capture software.

The personal toll

Shortfalls of £79,000 were found at his branch in Greater Manchester.

Earlier this year, he met the then Post Office minister Kevin Hollinrake when it was agreed that an independent IT expert would assess evidence claiming to “prove” Capture software was faulty.

Mr Marston said that “as a group” he believes those affected have provided “an overwhelming amount of evidence to show that Capture was totally unfit for use and should never have been released”.

He claims that sub-postmasters were told that “Capture would make our lives easier and that we would no longer have to do manual accounting as we had in the past”.

He says he was given the software by the Post Office “and basically left to get on with it without any sort of guidance”.

He describes “extra stress” and that he and his wife “are struggling” whilst waiting for the conclusions to the Kroll report.

Campaigners discovered old floppy disks earlier this year with the Capture software on them and passed them on to investigators.

Mr Marston, and other sub-postmasters, say they show that errors in the system could generate false shortfalls in accounts and believe Capture evidence was used in his prosecution.

They also claim that it appears that errors occurred when upgrades were made to the software.

Other factors such as power cuts are also thought to be another possible reason for faults.

The Kroll report is due to be released in the next few weeks.

A Department for Business and Trade spokesperson said: “We will thoroughly examine Kroll’s report into the Capture system and its impact on postmasters and set out next steps in due course.”