City Link parcel firm gone into administration....

Graham_Devon

How can a compnay lke city link compete with a company like Yodel?

City link were paying people on the books. Yodel employ people on zero hour contracts or a cost per parcel drop fee. Many of these "employees" have their own vans / transport, and, if you read courier forums, are just about scraping by. It's what they have to do as they have a family to provide for. These drivers depend heavily on tax credits etc.

I believe something needs to be done regarding zero hour contracts now. While ctiy link had it's own problems, companies hiring staff as employees are finding it harder and harder to compete with companies like Yodel. The employees of yodel are finding it harder and harder to get by.

I see the taxpayer is now going to pick up the redundancy costs.

Thrugelmir

Graham_Devon wrote: »

How can a compnay lke city link compete with a company like Yodel?

I avoid companies that use Yodel as a courier. You get the feeling that the employees are forced to cut corners. Not the way to run to a business.

Buzby

City Link have an army of owner-drivers, just like Yodel so should no be seen in a different light. When Initial Rentokil sold the business to BC they writing was writ large that things were not going to stay the same. Around the same time I switched my account which had been active since they took over the 'Red Star' services on British Rail - so not a short-term customer.

Losing a job is regrettable, but most of us have been there and is hardly unusual, and needs to be factored in, but the winners? Without a doubt BC, who will have earned more than they ever expended.

Thrugelmir

Buzby wrote: »

Without a doubt BC, who will have earned more than they ever expended.

How? I'm intrigued to know.

ChumpusRex

Thrugelmir wrote: »

How? I'm intrigued to know.

So am I. Early reports are that BC will had made a net loss of 50% of their investment, at least.

This includes a personal investment by the founder of BC, of £2m of his own cash.

antrobus

Buzby wrote: »

City Link have an army of owner-drivers, just like Yodel so should not be seen in a different light. ....

That is far to simplistic a statement. A lot of City Link's problems arose because of a decision to move away from the COD model, and bring the work in-house.

http://www.commercialmotor.com/latest-news/city-link-slashes-use-of-subcontractors

Buzby wrote: »

...When Initial Rentokil sold the business to BC they writing was writ large that things were not going to stay the same. Around the same time I switched my account which had been active since they took over the 'Red Star' services on British Rail - so not a short-term customer. ....

No, Red Star was acquired by Lynx Express.
http://www.cwn.org.uk/business/a-z/lynx-express/9901/990105-red-star.htm

Lynx Express was acquired by UPS
http://www.dmnews.com/ups-buys-lynx-express-for-965-million/article/88310/

Buzby wrote: »

...Losing a job is regrettable, but most of us have been there and is hardly unusual, and needs to be factored in, but the winners? Without a doubt BC, who will have earned more than they ever expended.

Another vote for the 'exactly how' response.:)

molerat

http://www.bbc.co.uk/news/business-30646076

Administrators announce job losses after failure to sell.