The National Transport Union has labelled the collapse of Australia's largest cold chain refrigeration logistics company a "tragedy".
Scott's Refrigerated Logistics, a national freight company that counts supermarket giants Coles and Aldi among its clients, has entered voluntary administration with KordaMentha appointed receivers.
As a result, the fate of about 1,500 workers hangs in the balance.
The company has warehouse facilities in all Australian mainland state capital cities with depots in many other regional centres, according to its website.
Transport Workers Union (TWU) national secretary, Michael Kaine, said transport companies like Scott's were struggling under razor-thin margins.
"This is another tragedy of the untrammelled commercial power at the top of transport supply chains," he said.
A Coles spokesperson said the company was aware of the challenges Scott's Refrigerated Logistics was facing.
"We are working hard to provide support and minimise the impact this might have on our customers and product suppliers," the spokesperson said.
The ABC understands that Woolworths receives deliveries from the company, but does not use Scott's to deliver produce.
"It’s early days, but we’ll continue to watch this development closely," a Woolworths spokesperson said.
"We’re aware that a number of our supply partners could be affected by this news, so we’re in the process of contacting them to gain a better understanding of how we can help support."
'Razor-thin margins'
Receivers appointed to Scott's Refrigerated Logistics said the business would operate as usual for the foreseeable future.
KordaMentha partner Scott Langdon said workers would stay in their jobs through the sale process.
"We facilitated the payment of suppliers yesterday [Monday]," he said.
"The 1,500 workers are being paid tomorrow – on time – and we are now immediately commencing a sale process to find a new owner for the business."
The NTU has used the company's closure to attack the what it says is a disparity in profit margins between transport operators and supermarkets.
Mr Kaine said supermarket giant Aldi's profit margin was far higher than those of its competitors and that it had "reaped the rewards".
"Retailers are reaping the gains from razor-thin margins while operators and drivers collapse under the strain," he said.
"We urgently need reform in transport to ensure wealthy clients at the top of supply chains are accountable for fair, safe and sustainable transport operations for the freight of their goods."
But an Aldi Australia spokesperson hit back at the union.
"Statements made by the TWU with regard to our business results and our supplier relationships are categorically untrue, baseless and damaging," the spokesperson said.
"The supermarket supply chains rely on many interdependent partnerships.
"Despite the challenges presented with this news, we are working with our suppliers and logistics partners to minimise impact to Aldi customers."
