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RCL claims drivers' strike has left company 'at risk'

3rd June 2010, Page 6
3rd June 2010
Page 6
Page 6, 3rd June 2010 — RCL claims drivers' strike has left company 'at risk'
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ROADWAYS CONTAINER Logistics (RCL) says truck drivers that went on strike last week over wage cuts have put the business "at risk".

Approximately 40 HGV drivers at the firm's Southampton site staged a one-day strike and picketed the entrance between 4am and 8pm on Friday 28 May.

"It is a huge pity that our drivers and their union have decided to take strike action," says Greg Vint, general manager for Southampton at RCL.

"We have excellent drivers who are among the highest paid in the industry. The problem is that with haulage rates reducing over 2009 by 14%, we cannot sustain those levels of pay."

The proposed salary cuts have been put to drivers despite RCL admitting it has added 30% to its turnover through new business wins over the past 12 months, as well as retaining much of its existing customer base.

"This is largely due to the excellent standard of service that our drivers give to our customers. But we cannot undertake this business at a loss, That would mean the more business we win, the more money we would lose," Vint explains "[RCL driver wages] are out of line with our competitors and result in our costs exceeding the rates we are paid by our customers," he insists

-Companies in our sector are under great pressure. It is very disappointing that just at a time when we are getting so well positioned for the hoped for future upturn, the whole business is being put at such risk."

The firm says it did everything to ensure minimum disruption to operations during the strike.

According to Vint. RCL has adopted a -very open style" and put in "considerable effort" to discuss with employees the difficulties of the current market conditions.

As CM went to press. RCL was attempting to organise a meeting with affected staff.

CM understands that Unite is the union involved in the action, but it was unavailable for comment. Last year RCL revealed a pre-tax loss of £4.2m on a turnover of £50m for the year ended 27 December 2008 (CM 10 December 2009), but promised improved figures for 2009.

The company was sold by Maersk just before the end of its 2008 tax year, to holding company Aegeus Transport.