Issue 3, Vol 1

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FEDERATION NEWS

Update from the Chief Executive

2010 started badly, especially in the Reading and Basingstoke area, with at least 18 inches of snow and a couple of days when staff could not get to the office. However, the upside was that the month saw 12 media hits with BBC National and Local News, ITN and Sky all seeking the views of FSDF on the effect of the weather on the food supply chain. To read further please click here

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FSDF Spring Conference

Making the difference - Improving Operational Efficiency Click to find out how to book

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FSDF at the Food and Drink Logistics Show

As you may already know FSDF have been asked to support the Food and Drink Logistics Show which is a new part of the larger FoodEx show at the NEC on 21-24 March. As part of this agreement we have a large prominent stand at the show and there is an opportunity for our Associate Members to be a part of this.  Click to find out further information

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COMMITTEE FOCUS

Technical and Safety

Work at Height Access Equipment Information Toolkit (WAIT)

Since 2001, an average of 50 people in Great Britain have died each year as a result of a fall from height and a further 8,702 are seriously injured. Don't let a fall shatter your life! Click here for more details

 

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Construction firm fined after worker injury

A construction company from Gateshead has been ordered to pay £4500 after one of its workers was seriously injured when a fork-lift truck telehandler he was operating overturned.Click here

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F gases and ODS: approach to biggest emitters

Waitrose, Sainsbury’s and Co-op sign Compliance Assistance AgreementClick here to read more

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Business Affairs

UK pork labelling code unveiled

A final labelling code of practice for pork has been launched, 24th February, by Defra Secretary of State Hilary Benn at the NFU conference in Birmingham.Click here to read more

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BRC-Global Standards Conference

The 2010 BRC Global Standards Conference for Certification Bodies and TrainersClick here

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Logistics Employers Should Grab Apprenticeship Grants

Dr Mick Jackson, Chief Executive of the freight logistics industry sector skills council Skills for Logistics, has told employers that they should take advantage of the Government’s offer to provide grants of £2,500 towards the establishment of new Apprenticeship places for 16 and 17 year olds. Click here to read more

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Logistics Management

Drivers warned that A52 is ‘unfit’

Road users in Derbyshire have been advised to slow down on a stretch of dual carriageway because the surface is not "fit for purpose".Click here to read more

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Free Fleet Performance Management Tool

The Fleet Performance Management Tool is designed to help truck operators record and report essential fleet information including MPG, CO2 and incidents.Click here for further information

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BUSINESS NEWS

Chalcroft Construction offers visitors food for thought

Frozen and chilled food sector specialist Chalcroft Construction, based in Pershore will be showcasing its work at FoodEx 2010 exhibition in March. To read more click here

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BFFF Publication - Into the light

The BFFF publication "Into the Light" was issued in 2002 to provide guidance for branded and bespoke frozen products in the foodservice supply chain to improve the labelling of outer cases.click here for more details/a>

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UK Fork Lift Trucks industry what’s in store for 2010?

Few would argue that 2009 was a difficult year for the UK Fork Lift Trucks industry but early signs suggest conditions in 2010 will be much brighter. According to new research by leading industry analysts Plimsoll, the market is slowly emerging from the malaise of the last 2 years.read more

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Heinz appoints chief supply chain officer

HJ Heinz Company, the food producer, has appointed Bob Ostryniec to the position of chief supply chain officer - a newly created role to drive worldwide initiatives to leverage the company’s global scale, reduce costs, improve gross margins and enhance productivity.click here to read more

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Netto chooses Norbert for returns

Netto has appointed Norbert Dentressangle to establish and operate a centralised returns handling centre for non-food products from its UK stores. click here

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Government acts to protect supermarket suppliers

A new code of practice has come into force in the UK which is intended to help farmers and food companies when they do business with the main supermarkets. To read more click here

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CBI NEWS

Latest Economic update from CBI

For more click here

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LEGAL UPDATES

European Court of Justice finds age-related notice periods to be discriminatory

In Kucukdeveci v Swedex GmbH & Co, the European Court of Justice (ECJ) has held that German legislation, which provided that all years of service before the age of 25 should be disregarded in calculating service-related notice periods, breached the EU Equal Treatment Directive (2000/78). To read more click here

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Update from the Chief Executive

2010 started badly, especially in the Reading and Basingstoke area, with at least 18 inches of snow and a couple of days when staff could not get to the office. However, the upside was that the month saw 12 media hits with BBC National and Local News, ITN and Sky all seeking the views of FSDF on the effect of the weather on the food supply chain. This included a brief appearance on ITN News at Ten, emphatically telling an ITN reporter than there was no need to panic buy (Silly question!). Many thanks to all those members who fed situation reports over that difficult period to enable us to be seen to be the voice of the food supply chain as well as a source of up to the minute information for Department for Transport (DfT) and Department for Environment, Food and Regional Affairs (Defra).

In addition, January saw the completion of a long period of joint work with BFFF and the agreement with Health and Safety Executive for the wording of a practical Guidance for Working at Heights in cold stores. This is supplementary to the HSE Guidance note PM 28(2). The final printed document will be available shortly, but in the meantime go to www.fsdf.org.uk to view the new guidance document.

2010 looks to be a busy year on the events front. The final programme for the Spring Conference has just gone out, to take place at the Leicester Marriott Hotel, on Thursday 11th March. Titled “Making the Difference – Improving Operational Efficiency”, full details and a booking form are included in this newsletter. Focus is very much on how to improve efficiency and profitability with the format this time being quite different. We have responded to member comment about style and content at previous events. This time we provide more speakers, delivering more detailed and specialist presentations, aiming to provide practical advice in the three major sectors of members business, and couple this to interactive workshops to facilitate delegate discussion, debate and sharing of best practice. We believe this is real value for money and an event you cannot afford to miss.

Following on is the Food and Drink Logistics Show, from 21st to 24th March at the NEC Birmingham. FSDF is a co-supporter, has a stand and has been co-organiser of the presentations in the Business Briefing Theatre. Members will be very welcome on the stand. Meeting rooms will also be available for members use. Please let us know if you want further details. Finally the FSDF team are reviewing the delivery of a wide range of cost effective member benefits and information services. We also represent the views of members and the wider food and drink logistics industry sector on legislative and business issues which have relevance and impact to them, and provide you with the opportunity to have your input. We seek to deliver relevance and value.

I am grateful to those members who responded to a recent perception survey, which gave us a useful insight into member satisfaction, the results of which will be discussed by your Board shortly, and integrated into the marketing and development plan already underway during 2010. For those who did or could not respond, you have a second chance shortly and I ask you take it. Your views are important, to enable us to ensure that we remain relevant and of value.

With best wishes Chris Sturman - Chief Executive

 

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Julie Pizzey running the Brighton Marathon

Julie and her running buddy are running the Brighton Marathon on Sunday 18th April.

Julie is running the marathon for CLIC Sargent to support children with Leukemia and Cancer. If you can donate even a small amount to the cause that would be great. She has run a half marathon in 2008 and many 10k races over the years but this will be a real challenge to both mind and body.

To donate to her event, click on the link below, or let us know if you would rather not donate over this website and we will keep a record of your pledge.

We will keep you posted on her progress.

To sponsor Julie please click the following link:

http://www.justgiving.com/Julie-NeilMarathon

To find out more about CLIC Sargent:

http://www.clicsargent.org.uk/Aboutus

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FSDF Spring Conference

    SPRING CONFERENCE 2010 - MARCH 10/11 LEICESTER

The FSDF Spring Conference 2010 will take place on 10/11th March at the Leicester Marriott Hotel

Book your place for just £150 before 18th February

We are delighted to announce some of the following confirmed speakers:

• David Brankstone BRC – BRC Global Standard Version 2
• Julie Gartside – Enviros Consulting – CCA/CRC Reporting & F Gas Support
• Norbert Dentressangle – Fleet Management Techniques and Best Practices
• Dennis O’Sullivan MD Deltion – Logistics and Transport Real Time Management and Visibility over the internet
• Mark McGrath HSE – Where accidents are happening, solutions and actions

With a Keynote speaker - Professor Alan Braithwaite, Executive Chairman - LCP Consulting

In addition to the excellent line-up of speakers, the FSDF Spring Conference is the perfect place to network with your peers, so take advantage of this excellent offer and book your place for just £150!

CLICK HERE to view the full Conference programme.

CLICK HERE to book your place for just £150 (plus VAT) online

The FSDF Spring Conference is supported by

The Food Storage and Distribution Federation, 7 Diddenham Court, Lambwood Hill, Grazeley, Reading, Berkshire. RG7 1JQ.    Tel 0118 988 4468 Fax 0118 988 7035 Email info@fsdf.org.uk www.fsdf.org.uk

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FSDF at the Food and Drink Logistics Show

As you may already know FSDF have been asked to support the Food and Drink Logistics Show which is a new part of the larger FoodEx show at the NEC on 21-24 March. As part of this agreement we have a large prominent stand at the show and there is an opportunity for our Associate Members to be a part of this.

We haven’t worked out exactly how this will work logistically yet but it will either be in the form of a small area for literature, maybe a graphics poster/board and a person to support this. There will be some cost involved, but it is an excellent opportunity to market your company to the thousands of prospects that will attend. 

If you are interested in being part of the show then please contact Julie Pizzey for more information.

iimni/UserFiles/Applications/Documents/Downloads/FD Logistics eBro 18-09-09.pdf

http://fdlogisticsshow.co.uk/page/home.html

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Work at height Access equipment Information Toolkit (WAIT) from the HSE

Don't let a fall shatter your life Since 2001, an average of 50 people in Great Britain have died each year as a result of a fall from height and a further 8,702 are seriously injured. Don't let a fall shatter your life!

If you don't work at height very often or are unsure about which type of access equipment to use, it's important that you assess the risks and select the right equipment for the job. WAIT - (Work at Height Access Equipment Information Toolkit) shows you some possible solutions.

How will WAIT help me?  WAIT has been developed to help you understand the key issues when working at height and the factors to consider when selecting the most appropriate and safest type of access equipment.

Does WAIT cover all work at height tasks?NO! It does not take into account specialised types of work. For advice on working on fragile roofs see HSG33 [PDF] and http://www.hse.gov.uk/pubns/indg284.pdf

For advice on rope access techniques contact http://www.irata.org/.

For more information click the following link   www.hse.gov.uk/falls/wait/index.htm

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Construction firm fined after worker injury

A construction company from Gateshead has been ordered to pay £4500 after one of its workers was seriously injured wehen a fork-lift truck telehandler he was operating overturned.

The incident took place on a site at Holly Hall, Sandhoe, near Corbridge, in Northumberland on 16th July 2008. A 38 year old worker was lifting roof trusses onto the roof of the development when the fork-lift truck telehandler that he was operating overturned. The machine fell onto its side, throwing him against the machine's window and controls.

He had not been given training to use the machine by his company and was not wearing a seat belt when the incident happened. He suffered multiple fractures to his right arm, leaving him with limited mobility in his shoulder. He still requires medical treatment and is unable to return to his job.

The investigation by the Health and Saftey Executive (HSE) found that while the company had produced a risk assesment and a system of work for lifting the roof trusses, neither were sufficient. It had failed to identify the dangers that workers would face.

His employer pleaded guilty to breachings. 2(1) of the Health and Safety at Work, etc Act 1974 which covers the duty of the employer to ensure, so far as is reasonably practicable, the health, safety and welfare at work of the employees. The company was fined £4500 and ordered to pay costs of £2342.20 and a victim surcharge of £15.

After the case, HSE Construction Inspector John McGill, said that the company failed to ensure"(that their employee) had the necessary training to use the machine and had not reviewed its processes to ensure that unauthorised personnel did not have access to specialist machinery on site."

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F gases and ODS: approach to biggest emitters

Waitrose, Sainsbury’s and Co-op sign Compliance Assistance Agreement

Three more supermarkets - Waitrose, Sainsbury’s and Co-op - have joined Morrison’s and Marks & Spencer by signing Compliance Assistance Agreements. The Compliance Assistance Agreement is a voluntary agreement that enables F-Gas Support to monitor the efforts being made to reduce emissions under the EC F gas Regulation.

As the sector with the largest F gas emissions it is important that supermarkets get their leakage rates down and it is encouraging that five of the bigger supermarkets are now demonstrating that they are taking steps to do so. F-Gas Support continues to work with all the major supermarkets and is a source of advice to businesses enabling them to comply with these regulations.

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Drivers warned that A52 is ‘unfit’

Road users in Derbyshire have been advised to slow down on a stretch of dual carriageway because the surface is not "fit for purpose".

The A52 suffered frost damage in recent cold weather but officials have said the entire carriageway may not have been laid correctly. The city council has said motorists should drive at 40mph instead of the usual 70mph to lessen problems.

The authority said it wanted to get the winter weather out of the way before starting major repairs. John Hansed, head of highways, said the surface laid 10 years ago was coming away. "It is not fit for purpose at the moment," he said. "We do have a programme to repair it - but not immediately. We will be going in, in about three or four weeks' time, and we are currently talking to surfacing contractors to see that we get the best price to carry out the repair work. If we have any more bad weather in February then it might cause a bit more deterioration which we would like to catch when the repairs are carried out."

Mr Hansed said short term repairs would cost in the region of £200,000 but complete resurfacing would be in the region of £750,000.

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Free Fleet Performance Management Tool

The Fleet Performance Management Tool is designed to help truck operators record and report essential fleet information including MPG, CO2 and incidents.

It runs on almost any computer and allows your to analyse efficiency and improve operations.

- Any size fleet can be covered

- Additional KPIs including engine idling time and Penalty Charge Notices

- Updated user manual

This tool is part of a growing range of free Freight Best Practice materials.

Order your FREE copy by call 0845 377 0877 or by visiting www.freighbestpractice.org.uk

 

 

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UK pork labelling code unveiled

A final labelling code of practice for pork has been launched  (24th February) by Defra Secretary of State Hilary Benn at the NFU conference in Birmingham.

Major supermarkets and foodservice firms have endorsed the voluntary code, which is said to give clear and unambiguous information about country of origin on packs of pork, bacon and ham.

The final code has come about as a result of the Pig Meat Supply Chain Task Force, brought together by Defra and chaired by Food and Farming Minister Jim Fitzpatrick.

Speaking prior the conference, Benn said: "The only limitation on this new code is the way major retailers implement it, and I fully expect them to sign up to it – and then we've got what we're looking for."

Task Force member and Bpex and National Pig Association chairman Stewart Houston said: “Clear labelling is great news for everyone in the supply chain – easier choice for consumers and more sales of British pork products for the retailer, benefiting both the producer and the processor.”

The key aim of the code will be to ensure that the country of origin of the pork used in processed products will be clearly displayed on the pack. For example, the code says that terms such as ‘Produced in the UK’ can be ambiguous if origin is not qualified.

Companies adhering to the new code have committed to providing clear information such as ‘Produced in the UK using pork from country x.’

Production definitions, such as ‘outdoor bred’ and ‘outdoor reared’ are being finalised and an announcement on how these could be incorporated into labelling is expected in the near future.

The code of practice also covers the use of single country of origin descriptions and where pork from a number of different countries may be used. The key elements of country of origin include:

* A commitment to clearly display the country of origin on retail packs;.

* Where single country of origin is displayed, it means that the pig was born, reared and slaughtered in that country;.

* The term “produced in the UK” will not be used without qualification of the origin of the pork;.

* The use of national terms and symbols (such as flags) will mean that the pork comes from that country;.

* Product-specific terms such as Wiltshire Cure will mean that the pork used to make the product comes from within the UK. If not, the origin will be clearly stated;.

* Imagery that could imply UK origin will only be used on UK-origin product, otherwise there will be a statement of origin on the pack;.

* Foodservice outlets will make origin information readily available to customers, such as on the menu, in literature or on company websites; and.

* Where the term “local” is used, it will be clearly defined.

source : http://www.meatinfo.co.uk/news/fullstory.php/aid/10199

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BRC - Global Standards Conference

The 2010 BRC Global Standards Conference for Certification Bodies and Trainers

March 15-16 2010 - London

The 2010 BRC Global Standards conference for Certification Bodies and Trainers will be held over 2 days to ensure that participants have the opportunity to be updated on the full range of topics affecting the auditing and training for BRC Global Standards.

Topics include:

* Food Standard development around the world

* Consumer Products Standard development in Europe, North America and Asia

* An update on the BRC Global Standard for Packaging and Packaging Materials

* Key Performance Indicators and Compliance

* The publication of Sector Specific and Best Practice Guidelines

* An update on the future direction of BRC Training Courses

 

Please note the BRC Global Standards Conference is only for approved BRC Certification Bodies and Approved Training Providers.

Please click following link for more information :   www.brcglobalstandards.com/certification-bodies/global-standards-conference/

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Logistics Employers Should Grab Apprenticeship Grants

Dr Mick Jackson, Chief Executive of the freight logistics industry sector skills council Skills for Logistics, has told employers that they should take advantage of the Government’s offer to provide grants of £2,500 towards the establishment of new Apprenticeship places for 16 and 17 year olds. This funding is in addition to the costs of training which are already met by the National Apprenticeship Service, but the scheme is only available until the end of March 2010.

Dr Jackson says ‘The benefits to both employers and young people resulting from the growth in apprenticeships over recent years have been obvious – for so many jobs within our sector the advantages of building up real working experience whilst continuing with education means that both the employer and the apprentice benefit directly. 'As the industry comes out of recession we will need the help and support of new young workers – the new grants provide a good incentive to start the ball rolling now and I hope that our industry can take on as many 16 and 17 year olds as we can. However, there is limited availability so if you are interested then you should act now by contacting Skills for Logistics'.

Full details of how apprenticeship schemes work are available from the National Apprenticeship Service at apprenticeships.org.uk or by calling 08000 150 600

Details of apprenticeships in the logistics industry are available from Skills for Logistics, more details at www.skillsforlogistics.org or by calling 01908 313360

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Netto chooses Norbert for returns

Netto has appointed Norbert Dentressangle to establish and operate a centralised returns handling centre for non-food products from its UK stores.

Previously, returned product was retained in store or within the retailer’s regional distribution centres with no defined process for disposal, taking up space and working capital.

Returned goods are now collected from all stores by Netto’s delivery vehicles and consolidated at the regional distribution centres for bulk transport to the returns handling centre.

Following inspection of product, Norbert Dentressangle’s BACTRAC system then captures details of returned items and automatically identifies the most appropriate disposition routes based on a set of user defined questions, dependent on the value and condition of the product.

These are typically return to vendor, re-sale through the secondary market or, if this is not possible, scrappage in line with the appropriate legislation.

Where appropriate, Norbert Dentresangle also undertakes product refurbishment in order to maximise recovery value.

In addition to providing real time, item level visibility of product in the reverse supply chain from point of receipt to final disposal, BACTRAC provides comprehensive views of historical data and trends, providing Netto with valuable management information.

Norbert Dentressangle has also worked closely with Netto to establish new return to vendor agreements with a number of major suppliers, helping to improve the recovery value of returned product. Nigel Tullett, logistics director for Netto, said: “Our low prices are testament to our ability to negotiate highly favourable purchasing agreements with our suppliers and, working strategically with Norbert Dentressangle, we are successfully extending this to the return of product.

 

“At an operational level, Norbert Dentressangle’s specialist expertise, systems and experience in the effective management of the reverse supply chain, combined with their established network of re-sellers, is helping Netto to realise significant improvements in recovery values and minimise scrappage for both commercial and environmental benefit.”

source: logisticsmanager.com

 

 

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Government acts to protect supermarket suppliers

A new code of practice has come into force in the UK which is intended to help farmers and food companies when they do business with the main supermarkets.

Practices such as big chains altering supply terms retrospectively or asking suppliers to fund promotions such as two-for-one deals will be outlawed. Supermarkets will be required to keep written records of negotiations with suppliers.

Suppliers and farmers have long been complaining of 'unfair dealings' and 'unreasonable demands' from the big supermarket chains. This new Grocery Suppliers Code of Practice (GSCOP) - which replaces the Supermarket Code of Practice - will give them access to independent arbitration and protect them from practices such as being asked to cover the cost of theft. Regulated by the Office of Fair Trading, it also requires retailers to train staff to use the code and appoint compliance officers.

Whereas previously codes only covered the so-called 'big four' chains (Tesco, Asda, Sainsbury's and Morrisons) the new code of practice covers the 11 biggest grocery retailers - those with annual sales of over £1bn.

The move comes after an investigation in 2008 concluded that a stronger code of practice was needed. The Competition Commission found that that large grocery retailers were passing on excessive risks and unexpected costs to their suppliers. In August 2009 it recommended that the government take steps to set up, as soon as practicable, an ombudsman to levy penalties on large grocery retailers for non-compliance. Last month the Government said it accepted in principle the need for such a body, and would start consulting this month what form it would take.

Consumer Minister Kevin Brennan said the new code would be a "great improvement" on the current system. "However, the power that large grocery retailers remain able to wield over their suppliers can still create pressures on small producers, especially in these difficult economic times, which ultimately may impact on consumers," he added. "Free and fair competition is the key to a healthy market and it is right that there should be an enforcement body to make sure that consumers are getting the best value for money."

Malcolm Walker, the chief executive of the Iceland frozen food chain, told The Daily Telegraph that the introduction of the GSCOP is "madness" and that Iceland will adhere to it reluctantly. "We are going to do the bare minimum [to comply]," he says. "It's a complete waste of time. We will do the minimum for compliance reluctantly because we have to." He argued that GSCOP will do little to alter the occasionally fractious commercial relationships that exist between stores and their product suppliers. "Nothing is going to change. It is the nature of life. Big suppliers bully small retailers and big retailers bully small suppliers. It is a fact of life," he said.

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Chalcroft Construction offers visitors food for thought

Frozen and chilled food sector specialist Chalcroft Construction, based in Pershore will be showcasing its work at FoodEx 2010 exhibition in March.

Representatives from Chalcroft will be on hand at the show, taking place at the NEC in Birmingham, to discuss how its services could be of benefit to food producers and distributors wanting to either refurbish their premises or construct new facilities.

Chalcroft operates across the UK from its bases in East Anglia and the West Midlands and can list well-known names such as Coca-Cola, Kellogg’s, Dairy Crest, Branston Potatoes and Nestlé among its client base.

Whether utilising its in-house workforce, or working in partnership with a dedicated team of specialist consultants, designers and sub-contractors, Chalcroft has the skill and experience to deliver full turnkey projects or carry out refurbishment projects on live sites.

One of the most recent completions from Chalcroft was for Dover-based Tilmanstone Salads, part of Bakkavor Group, which prepares a number of value-added salads and vegetable product ranges for a well-known, premier UK high street retailer.

Tilmanstone called in Chalcroft to assist in the design and lead the build of an extension that was needed when the firm took on additional products transferred from another site within the group.

Chalcroft has recently secured contracts for a range of food companies across the UK, including the development of a new chill chamber for a major producer in Lincolnshire, and a chill store extension for a food wholesaler in Hertfordshire.

For more information about Chalcroft Construction, visit www.chalcroft.co.uk, email Tess Morley at tessmorley@chalcroft.co.uk, or call her on 01553 776543.

 

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FSA Foodbase Web Site

 

 

Welcome to foodbase, the Food Standards Agency's open access repository. This site intends to make the results of the Agency's science more accessible.

To navigate the site use the toolbar on the left or go to the search function.

http://www.foodbase.org.uk/

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BFFF Publication - Into the Light

The BFFF publication "Into the Light" was issued in 2002 to provide guidance for branded and bespoke frozen products in the foodservice supply chain to improve the labelling of outer cases.

We have now revised the publication and the new version is available on our website - www.bfff.co.uk/about-us/publications

Please note that there are no changes to the basic requirements for suppliers but the booklet has been updated in terms of contacts and now also includes images of good and bad practice so suppliers can see what they need to work towards.

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UK Fork Lift Trucks industry what’s in store for 2010?

Few would argue that 2009 was a difficult year for the UK Fork Lift Trucks industry but early signs suggest conditions in 2010 will be much brighter. According to new research by leading industry analysts Plimsoll, the market is slowly emerging from the malaise of the last 2 years.

David Pattison, senior analysts and author of the 2010 Plimsoll Analysis: “The recession tore through the market in 08 and 09 like a tornado and accelerated the rate of change in the market. Aggressive “growth at all cost” operators have been forced to abandon their reckless strategies and many have been caught out. However, some amazing companies have come through largely unaffected and look set to make 2010 their year. As the market continues to recover during the year the changes will continue to come thick and fast”.

When pressed on what changes he envisages in the market he offers: “More job losses and consolidations sadly. Even as the market improves there are a lot of companies, that survived by the skin of their teeth and they have to rebuild their profit margins and efficiencies.

He continues “Our latest analysis projects that a further 1,000 jobs will have to be shed if companies are to get back to profit and remain competitive in 2010. Whether through natural wastage or compulsory lay offs, job losses are necessary. With the average sales per employee figure down to £160,000, employees need to “buy in” and contribute more to the recovery of their companies - if you still have a job expect to work much harder in 2010. £344 million worth of profit has been wiped from the market in the last year and employers have no choice but to cut their cloth accordingly.”

As for mergers and acquisitions Pattison says: “In all we named 76 companies in our latest analysis that are ripe for takeover or merger. It’s a buyers market with many companies still recovering. Our report has picked some great examples of companies that are currently undervalued because of the recession that would be very attractive to prospective owners. For many struggling companies, a buy out may be the quickest route to get the company back on an even keel - even if it means relinquishing their independence. Inevitably, this will further increase job losses as new owners would quickly look for efficiency gains and to synergise their new acquisition with existing operations”.

So, aside from a serious refocus of profitability and the inevitable job cutting and takeovers, does Pattison see any cheer in 2010? “There are some real good news stories out there. We rated 154 companies as “Strong” in our latest report. As expected this number is down but these companies will lead the market out of the downturn. They have managed to be commercially successful without jeopardising their financial stability”.

The new Plimsoll Industry Analysis - Fork Lift Trucks gives an instant performance rating on the top 468 companies. Each company has been rated as Strong, Good, Mediocre, Caution or Danger according to their latest performance. A graphical and written analysis will tell you which companies are in trouble and who is getting it right.

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Heinz appoints chief supply chain officer

HJ Heinz Company, the food producer, has appointed Bob Ostryniec to the position of chief supply chain officer - a newly created role to drive worldwide initiatives to leverage the company’s global scale, reduce costs, improve gross margins and enhance productivity.

“Bob’s appointment reflects his exceptional performance in optimising savings and efficiency in the company’s North American supply chain while building best-in-class supply chain processes,” said William Johnson, chairman, president and chief executive.

Heinz has also appointed Christopher Stockwell to the position of chief procurement officer for Heinz globally.

Ostryniec will continue to lead the Heinz’s global supply chain task force and he will also be responsible for:

* Providing strategic thought leadership on global supply chain issues and opportunities

* Partnering with the regional supply chain leaders to build and leverage global capability to achieve competitive advantage

* Building common, best-in-class supply chain processes, systems, metrics and tools.

Ostryniec joined Heinz in July, 2003 as group vice president, supply chain for Heinz North America. He was promoted to chief supply chain officer for Heinz North America in May 2005.

Before joining Heinz, he spent more than 17 years with General Electric and Stanley Tools in various manufacturing, purchasing and supply chain roles. In his last position with GE, he was vice president of manufacturing for European operations.

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CBI -Economic Update

 

# The Bank of England's Monetary Policy Committee (MPC) voted to hold its £200 billion Asset Purchase Programme (quantitative easing) and to keep interest rates at 0.5% at its February meeting. The Committee noted that this stock of past asset purchases and the low Bank rate would continue to provide a substantial stimulus for some time to come. The CBI expects a small rise in interest rates in mid-2010, as the economic recovery will mean that the Bank will have to make a start in returning monetary policy towards more normal levels.

# The CIPS/Markit Purchasing Managers' Indices (PMIs) continued to point to expanding activity in the services and manufacturing sectors in January, for the ninth and fourth consecutive month respectively. However, while activity in the manufacturing sector rose at its fastest since October 1994, growth in the service sector had slowed somewhat on recent months.

# The Bank of England reported that lending to households remained weak in December and the number of mortgage approvals fell slightly, after having edged upwards for the past twelve months. In addition, while lending flows to non-financial companies picked up slightly for the second month running, they remained well below their long-run average.

# According to Nationwide, house prices rose for the ninth month running in January (by 1.2%), and were 8.6% higher than a year ago - the fastest annual increase since October 2007. However, the 3 month-on-3 month rate of growth slowed slightly further, indicating some deceleration in underlying house price inflation.

# The Gfk index of consumer confidence edged up slightly in January, after modest declines in the previous two months.

 

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European Court of Justice finds age-related notice periods to be discriminatory

 

In Kucukdeveci v Swedex GmbH & Co, the European Court of Justice (ECJ) has held that German legislation, which provided that all years of service before the age of 25 should be disregarded in calculating service-related notice periods, breached the EU Equal Treatment Directive (2000/78). The ECJ also held that any principle of national law which cannot be interpreted in accordance with the EU Equal Treatment Directive and which is, therefore, contrary to the general principle of equal treatment found in European law, must not be applied.

Ms Kucukdeveci was employed by Swedex from the age of 18 and, in 2006, after 10 years of service, was dismissed. As German law provides that periods of service completed before the age of 25 should not be taken into account when calculating the statutory notice period, Swedex calculated Ms Kucukdeveci’s notice period as if she had been employed by Swedex for only 3 years. Ms Kucukdeveci subsequently challenged the law relating to the calculation of notice periods in the German Labour Court on the basis that it was age discriminatory. The Higher Labour Court referred the matter to the ECJ for a preliminary ruling on this issue.

The ECJ held that the German legislation afforded a difference in treatment on the grounds of age contrary to the EU Equal Treatment Directive and found that this difference in treatment could not be objectively justified. Although the ECJ stated that it was a legitimate aim to afford employers “greater flexibility in personnel management by alleviating the burden on them in respect of the dismissal of young workers, from whom it is reasonable to expect a greater degree of personal or occupational mobility”, the legislation in question was held not to be an “appropriate” means of achieving that aim. This was because the legislation applied to all employees who joined an undertaking before the age of 25, whatever their age at the time of dismissal.

The ECJ also held that the prohibition on age discrimination in the EU Equal Treatment Directive is a specific application of the general principle of equal treatment in European Law and that, as a result, national courts must decline to apply national provisions which they consider to be incompatible with the principle of non-discrimination.