If you’re part of this industry, whether you’re an owner driver, employee driver or operator, you know first-hand what unfair payment terms can mean for a business.

They transfer all the financial risk onto those with the most to lose, from the ones who gain the most from the hard work – wealthy clients at the top of the supply chain.

Many businesses are already on razor-thin margins, but are having to wait up to a shocking 120 days just to be paid.

Maximum 30-day payment terms need to become standard.

Fairer payment terms are a rational and reasonable standard to set immediately. We will also look to prohibit unfair terms like ‘efficiency dividend payments’ which pressure operators to dangerously cut costs.

Contract chains are complex, and there is a huge amount of work to do to hold wealthy clients to account. This is a quick fix to be actioned and improved over time.

COLLAPSE OF SCOTT’S REFRIGERATED LOGISTICS

When Scott’s Refrigerated Logistics collapsed, after being an industry leader, administrators said unsustainable contracts were a key reason for its demise.

The company was having to use debt funders just to pay its people. The trucks never stopped running at Scott’s, but if the contract settings aren’t fair in the first place, disaster can be just around the corner, no matter the size of your business.