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Transport IR action echoes retail hardship - ARA says: adjustments across entire supply chain NOW DUE

Peak retail industry body the Australian Retailers Association (ARA) today responded to truck driver strikes and protests across the country, indicating the transport sector’s recent industrial relations action is indicative of economic adjustments needed across the entire market.

ARA Executive Director Richard Evans said while retailers don't support the disruption to the supply chain and the inconvenience to consumers, they are keen for the market to readjust to the current economic climate to help retailers and their suppliers maintain profits and provide business certainty.

"A severe downturn in consumer confidence and increases in costs throughout the entire supply chain mean retailers have had to adjust their business model to suit economic times. The entire market has to adjust to supply costs and the transport sector is an indication of the early stages of the shifts needed across the entire market," Evans said.

"Long term transport contracts were signed when Australia was experiencing economic sunshine.  However, this situation is not just restricted to the transport sector. Retailers are suffering with retail lease contracts that were also signed when times were brighter.

"The entire market needs to readjust and the transport sector's industrial relation action is heightening the need for this to happen. Retailers, in particular small retailers, cannot continue to operate under loss conditions," Evans said.

Evans added that retailers were addressing current hardships in the transport sector, and in many cases, have acted to support their suppliers.

"The disruption to the supply channel caused by truck strikes and protests will affect all retailers. Some will be affected more than others depending on their product but ultimately the consumer will pay. They will pay with inconvenience immediately but with their wallets in the future," Evans said. 

For over 104 years, the Australian Retailers Association (ARA) has been the peak industry body in Australia's $292 billion retail sector which employs over 1.2 million people. As an incorporated employer body under the Workplace Relations Act and with a range of member services including business consulting, policy development, advocacy and education, the ARA promotes and protects over 5000 independent and national retailers throughout Australia. Visit www.retail.org.au or call 1300 368 041.

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