News May 2012 LOGISTICS
Stobart case raises 3PL employment law issues
The recent decision by the Employment Appeal Tribunal that Eddie Stobart Ltd had failed to comply with its obligations under the TUPE Regulations 2006 when it closed one of its warehouses, should act as reminder to the logistics industry of the importance of adhering to the TUPE rules, the United Kingdom Warehousing Association (UKWA) has warned.
“The TUPE rules can create problems for service providers – such as 3PLs – if they win new business or give up a contract,” said Simon Edwards, UKWA’s legal adviser.
“Broadly speaking, under TUPE if a 3PL provider wins a new contract, it may inherit relevant workers from the previous contractor if they have been part of a group organised to serve that particular customer. This
INDUSTRY Linde acquires its UK dealers
Linde Material Handling (UK) Ltd. has completed the acquisition of the outstanding shares in Linde Creighton Ltd.
In the past 12 months, Linde Material Handling (UK) Ltd. has also acquired the outstanding shares in Linde Sterling Ltd. and Linde Castle Ltd., and consequently Linde Material (UK) Ltd. is 100% owner of all its
trading companies throughout Great Britain, having previously acquired 100% of Linde Trifik in 2006. In a statement, Linde says the acquisitions are strong evidence of its commitment to – and investment in – its UK business.
“Our dealer network is one of Linde Material Handling (UK) Ltd.’s strongest assets,” the statement continues, “and
enables us to provide local fast service to our customers right across the country. This investment demonstrates how important this network is to our business and shows our on-going determination to provide the very best in customer service.” Headquartered in Basingstoke, Linde
Material Handling has 10 national network companies across the UK. Each Linde network company offers the full range of products and services with online links to the Linde facilities at Basingstoke.
Over 1,000 factory-trained
service engineers operate from these regional centres providing an efficient and effective local response to customer needs. n
www.linde-mh.co.uk (+44) 0151 608 2323
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can mean becoming responsible for a group of workers’ accrued service and employment rights. The 3PL provider may even find that it has to compensate its new inherited employees for failing to consult in advance of winning the contract.
“But TUPE impacts on a company that loses a contract too: it is sometimes difficult to demonstrate that a group of workers is dedicated to one particular contract so, if that contract is lost, the workers will not necessarily transfer across to the contractor and redundancy payments may be due if they have to be laid off. This often happens at multi-user warehouse facilities where workers are servicing a number of clients.” To read the full story, follow this link:
http://tinyurl.com/blowgoq. n
www.ukwa.org.uk
INDUSTRY
Multipart parent name-change strengthens TVS logistics brand
Multipart’s parent company has a new name: TVS Supply Chain Solutions Ltd (TVS SCS).
The new name reflects a natural progression, underlining Multipart’s acquisition by the TVS Group of India in September 2009 and paving the way for further TVS acquisitions and growth in the European logistics sector. The name change is also a reminder in a competitive marketplace of the financial strength of the business – which has a parent company with a combined turnover of $6 billion. TVS SCS has involvement that goes beyond Multipart – as well as the commercial vehicle aftermarket, it is active in the defence and beverage industries as well as being a major supplier of line side production parts for clients such as Cummins and Perkins.
The company also has European logistics operations in Spain and Germany as well as the UK. “The change of name is indicative of our intention to develop our business – both by organic growth but also through acquisition”, said Richard Slee, ceo of TVS Europe. “Multipart remains a strong brand in the UK CV industry and we plan to have suite of logistics businesses with at least as strong a presence in a variety of other industrial sectors.” n
www.tvsscs.com
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