STAND AND DELIVER !! WOOLWORTHS ACCUSED OF BULLYING SUPPLIERS INTO PAYING MILLIONS The consequences of decades of failed competition policy ........... Woolworths has been accused of bullying suppliers into paying millions of dollars. Just days after Coles requested to settle a similar case with the Australian Consumer and Competition Commission, and paid a $10 million fine, Fairfax Media has obtained emails that reveal rival Woolworths have been hit suppliers with demands and have been given a deadline of December 31 to hand over the cash. Many companies have already paid amounts ranging from $70,000 to in excess of $1 million. The brutality of the threats and lack of ethics is worse than what Coles was accused of by the ACCC, said one veteran food industry executive. There have been implied threats, including loss of shelf position and suggestions they [Woolworths] would just deduct the amount from our accounts. They have been too smart to put any of those [threats] in writing. According to a source at Woolworths, who spoke to Fairfax Media on the basis his identity would be protected, a high-level meeting of category managers was held in late November. At that meeting, managers were told they needed to recoup just under $70 million from suppliers by the end of the trading quarter. m.theage.au/business/retail/woolworths-accused-of-bullying-suppliers-into-paying-millions-for-cheap-cheap-campaign-20141217-1293tt.html
Posted on: Thu, 18 Dec 2014 14:02:08 +0000
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