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Food subbies fight for cash
Page 6
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Subcontractors are fighting for payment after alleged 'agent' goes bust. Chris 'Tindall reports.
OPERATORS WHO worked for an employee of an Irish-based contractor on behalf of supermarkets Tesco and Morrisons are thousands of pounds in debt after the 'agent' was declared bankrupt.
Walton Transport in Kilkenny held contracts with both supermarkets to carry out their distribution. The Irish haulage company insists an employee of theirs, Darren Matthews, was retained purely as a driver in the UK and never acted as a company agent or negotiated any contracts.
However, several firms in England say Matthews gave them work to do on behalf of Tesco and Morrisons between November last year and June 2005 and has failed to pay for most of it.
"It's a never ending catalogue of excuses and lies,saysTony Osborne of Gloucestershire-based Callow & Osborne Transport. He says the company is owed significant sums: "He paid two amounts, both in cash: £800 and 1500 in January dating back to work in November. We are only a small company; we only run three lorries.We are on the breadline,living hand to mouth. We couldn't pay things like our fuel bills;we now have to pay them all up front."
Another West Country company received two letters from Matthews in June after it complained about the thousands it was owed. Matthews wrote: -At last, the bank will send you a payment of f3.(XX) and I intend to get some more released to you next week... As you know, I mentioned Safeway [now Morrisons] were changing this run so it involves a collection from Bodmin. I don't know if or when this starts or how it affects this job at present but will inform you at the time.
According to the Insolvency Service Matthews went into bankruptcy on 13 July.
Walton Transport has instructed its solicitors to contact subcontractors who believe it is liable for payment. The solicitor's letter reads: "[Matthews]...was never a company agent or had any authority to negotiate and conclude any contracts or arrangements on behalf of Walton Transport. Walton Trans port has no connection with any of the transactions referred to.
Matthews says everything he has done is legal and he will be seeking an annulment to the bankruptcy order this week:It's in the hands of solicitors at the moment. Everyone will be paid."
A spokesman for Morrisons says: "We did have a contract with Walton Transport, who we now believe employed someone called Darren Matthews in the UK. Morrisons is a responsible company and only works with reputable companies. It is not currently working with Walton Transport."
Walton Transport declined to comment on the situation. christopher.tindall@rbi.co.iik