Truck drivers and members of the Transport Workers Union will be rallying outside Aldi stores this morning, blaming the supermarket for the collapse of Australia’s biggest refrigerated logistics company, Scott’s.

The trucking company entered liquidation on Friday afternoon, with 1,200 of the 1,500 staffers made redundant yesterday. The remaining 300 are believed to have been kept on to wind down the company.

Scott’s ensured the public that food deliveries would continue as normal under receiver KordaMentha, but the major supermarkets clearly weren’t convinced, moving stock from Scott’s to other companies.

TWU national secretary Michael Kaine called Scott’s collapse a “tragedy of a supply chain crisis caused by wealthy clients like Aldi squeezing transport contracts and profiting off the razor-thin margins of operators.

“Unlike Coles and Woolies, Aldi has refused to sign a supply chain charter with the TWU and instead tried to silence truckies in court – but lost, twice.

“Scott’s Refrigerated Logistics is a major casualty of an industry-wide crisis that’s pushing operators and drivers to the brink, which will have an enormous impact on our essential grocery supply chains.

“Scott’s is not the first transport company to be pushed out of the market by profit-hungry clients at the top of supply chains, and it won’t be the last unless we enact reform to ensure those clients are accountable for fair, safe and sustainable transport contracts.

“Last year the federal government committed to setting enforceable minimum standards in transport. The transport industry is at crisis point – we need the federal parliament to urgently pass this reform to save businesses and lives.”

Aldi only made up 3 per cent of Scott’s business. The supermarket strongly denies the TWU’s ” “baseless and damaging” claims.

“The TWU continues to make unsubstantiated and wildly inaccurate claims about both our supplier partnerships and how seriously we take the safety of our drivers,” an Aldi spokeswoman said.

“The Aldi business model does not involve squeezing suppliers. Our low prices are possible thanks to our focus on efficient business process.

“Aldi sets clear expectations with our suppliers to ensure there is correct payment of wages, vehicles are maintained, delivery time frames are realistic and achievable and drivers take breaks as required by legislation.

Aldi said it has been engaging with the TWU.

“We have asked for details to substantiate safety claims made by the TWU and indicated our willingness to meet with the TWU,” the spokeswoman said.

“Most recently, we wrote to the TWU two weeks ago offering to meet with them and are still waiting for a reply. We are proud of our safety credentials and we remain open to dialogue with the TWU, and other representative groups, to learn if there are ways we can improve.

“Aldi engages fairly and professionally with all unions that have coverage of our employees and comply fully with the provisions of the Fair Work Act when dealing with all unions and their rights to access our sites.”

The writing has been on the wall for some time when it comes to Scott’s.

Private equity firm Anchorage Capital Partners bought Scott’s in June 2020 for $1, assuming the company’s $75 million in debt.

It cut its fleet from 1,800 trucks to 500, and trimmed the operation.

But COVID, flooding, and the increased price of fuel hammered their plans.