Red Star slashes carriers' contracts
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• The agreements of the 60 carriers contracted to carry out Red Star's national collection and delivery work have been slashed.
The British Rail subsidiary has been put back on the market following a cost-cutting campaign designed to restore profitability and attract buyers. The first attempt to sell Red Star failed last year because of lack of interest.
According to Red Star "one or two" hauliers were not reappointed as a result of a national retendering process for collection and delivery. All of the contract winners have previously worked for Red Star.
In a move that Red Star says will reduce its collection and delivery costs, the carriers have been told to expect a 50% reduction in the number of packages they will handle. But they will receive higher average payments for the remaining consignments.
The cuts result from a decision by Red Star to withdraw from its loss-making 12:00 and 17:30hrs next-day services.