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Sainsbury’s Facing Disruption From Possible Lorry Driver Strike

Around 500 Sainsbury’s lorry drivers based in Essex and Birmingham are being balloted for strike action due to a dispute over attempts to outsource their jobs.

The workers, members of the Unite union, are directly employed by Sainsbury’s. However, the supermarket is said to be planning to transfer them to logistics group Wincanton at the end of April.

The Unite union claims the transfer would result in the workers no longer being eligible for benefits they receive as Sainsbury’s employees. These include a 15% Sainsbury’s discount, as well as share save and incentive schemes.

Unite general secretary Sharon Graham commented: “Sainsbury’s is attempting to outsource its staff on the cheap. Meanwhile, its profits continue to grow. This is corporate greed pure and simple. Sainsbury’s lorry drivers have their union’s total support.”

The ballot for strike action opens on Monday and closes on 11 March. Unite claims that any industrial action will cause severe disruption to store deliveries from Sainsbury’s distribution centres in Coleshill, Birmingham and Waltham Abbey, Essex.

Unite national officer Matt Draper said: “There is still time to resolve this dispute before it escalates. But for that to happen, Sainsbury’s must get back around the negotiating table and put forward a deal our members can accept.”

Sainsbury’s has yet to comment on the issue.

Earlier this month, the group’s CEO Simon Roberts outlined plans for cost savings of £1bn over three years to support its updated strategy aimed at making gains on its traditional supermarket rivals and the discounters.

NAM Implications:
  • At a time when availability is all…
  • …any anticipation of delivery disruption means building expensive buffer stockholding, just-in-case.
  • Possibly negating potential savings re outsourcing labour…