Issue 17, Vol 1

FEDERATION NEWS

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James Woodward hands over baton to Malcolm Johnstone

FSDF has new President read more

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FSDF Christmas Message

click here to read message

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FSDF Spring Conference

Making the difference. Improving operational efficiency. Click for more details

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COMMITTEE FOCUS

Technical and Safety

Sign up to the Pledge

The Health and Safety of Great Britain, be part of the solution .click here

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EC Ozone Regulation (EC 1005/2009)

This Regulation comes into force on 1st January 2010click here for details

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F Gas Regulation Update

click here

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Business Affairs

Primary distribution KPIs revealedclick here

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Logistics Management

Freight Best Practice Case Studyclick here

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BUSINESS NEWS

Weetabix outsources to TDG

Following a thorough review of its in-house warehousing and transport operations, Weetabix, manufacturer of the UK’s favourite cereal, is outsourcing these services to TDG in a five year contract worth £60 million. TDG will be responsible for Weetabix’s 350,000 sq ft warehouse operations at Burton Latimer and movements between its manufacturing sites at Corby and Ashton.click here for press release

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Quick Frozen Foodstuffs Regulations 2007

These rules apply to al businessses that make, transport (including by rail), store or sell quick frozen foodstuffs (QFF).click here for factsheet

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4 ways to cut business travel costs

The cost of business travel has increased dramatically with the rise in fuel prices.click here

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Tesco come to the aid of Workington

Tesco will be opening a supermarket in flood damaged Workington.click here

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CBI NEWS

RECESSION IS THE CATALYST FOR A DECADE OF BUSINESS CHANGE - CBI

The recession has raised concerns about commercial models, supply chains and finance that will reshape business behaviour well into the next decade

to read more

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CBI actively awaiting positive Copenhagen result

As the crucial UN climate change conference draws to a close on Friday, the CBI has been in Copenhagen this week in order to engage with members and reiterate its calls to delegates for a positive outcome to the talks.click here for more details

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LEGAL UPDATES

 

Calculating the national minimum wage where a worker always receives overtime or shift payments to find out more

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Employment matters: the ‘at a glance’ guide to employment law. to find out more

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James Woodward hands over baton to Malcolm Johnstone

James Woodward, Managing Director Coldmove Ltd, has served as FSDF President for the last 2 years 2008 - 2009. He will handover the baton to Malcolm Johnstone, Managing Director ACS&T, with effect from 1st January 2010, who will serve in this role for the next two years.

At the Board meeting held on 9th December, the change of President was formally confirmed and James handed over the FSDF Chain Of Office to Malcolm.

 

 

 

 

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FSDF Christmas Message

The Chief Executive and staff would like to wish all FSDF Member companies, their staff and customers a very Merry Christmas and more optimistic and prosperous 2010.

 

 

 

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FSDF Spring Conference

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Weetabix outsources to TDG

 

Following a thorough review of its in-house warehousing and transport operations, Weetabix, manufacturer of the UK’s favourite cereal, is outsourcing these services to TDG in a five year contract worth £60 million. TDG will be responsible for Weetabix’s 350,000 sq ft warehouse operations at Burton Latimer and movements between its manufacturing sites at Corby and Ashton.

In addition, TDG will manage all inbound and outbound transport, using a combination of its high cube network, vehicles transferred from Weetabix and 16 new M A N vehicles and 47 high cube trailers.

“This is the first time Weetabix has outsourced its UK logistics, and we are confident that the transfer of these complex operations will be seamless,” says business director, Mick Wilson. “There is a great cultural fit between our two businesses, and we are looking forward to developing further our strong relationship built over the past few months.”

 

 

 

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Health and safety pledge forum

 

HSE has launched an all-new, interactive Health and Safety Pledge Forum.

This is intended as a space for you to talk about what you are doing to improve health and safety in your organisation. They provide useful tools, case studies and a platform to share your views.

As part of their new strategy, a 'pledge' has been developed.

It’s a commitment to improving health and safety that organisations and individuals can sign up to

Click here to sign the pledge : http://www.hse.gov.uk/strategy/signup.htm

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Recast EC Ozone Regulation (EC 1005/2009)

Please find the link for a copy of the recast EC Ozone Regulation (EC 1005/2009) - this Regulation comes into force on 1st January 2010.

You can find a copy of our information sheet on HCFC phase-out, RAC 8, at www.defra.gov.uk/fgas

We will be updating this sheet (RAC 8) to provide more detail on some of the requirements that will apply from January 2010, such as the need to:

• • Keep records for systems containing 3 kg or more of HCFCs
• • Label stationary refrigeration and air-conditioning equipment to which reclaimed or recycled HCFCs have been added
• • Record the details about the undertaking who are the source of recycled HCFCs and who have supplied reclaimed HCFCs

We will circulate a copy when it has been revised.

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Primary distribution KPIs revealed

Freight Best Practice has published a benchmarking survey for the primary distribution sector covering a number of key performance indicators.

The survey found that on average:

* Empty running stands at just 13 per cent (compared to a commonly referred to industry average of 25 per cent)

* Miles per gallon stand at 8.54.

* Vehicle fill stands at 82 per cent.

The survey breaks the figures down by GVW, route type, sub-sectors, region and route so operators can accurately compare their performance with that of the survey.

Freight Best Practice is funded by the Department for Transport and is managed by AECOM to promote operational efficiency, safety, journey time reliability and CO2 reductions within freight operations – road, rail and waterways.

The programme identifies and disseminates best practice and offers information, support material and guidance on saving fuel, developing skills, equipment and systems, performance management and multi-modal operations.

More from the Freight Best Practice web site: www.freightbestpractice.org.uk

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Freight Best Practice - Case Study

Cooling Cost and Boosting Efficiency through Eco-friendly Refrigeration Equipment

To view case study please click : click here

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Factsheet:Quick Frozen Foodstuffs Regulations 2007

Who should read this?

These rules apply to all businesses that make, transport (including by rail), store or sell quick frozen foodstuffs (QFF). The rules apply to QFF only if they are labelled as ‘quick-frozen’ (which is optional).

Who should read this?

These rules apply to all businesses that make, transport (including by rail), store or sell quick frozen foodstuffs (QFF). The rules apply to QFF only if they are labelled as ‘quick-frozen’ (which is optional). They do not apply to ice cream or edible ice.

Main requirements

New rules:

• All new temperature monitoring instruments used in the transport, warehousing and storage of QFF must comply with European standards (EN12830, EN13485 and EN13486) from 1 January 2006.

• Instruments installed before 1 January 2006 that complied with previous rules can be used until 31 December 2009. All instruments must meet European standards from 1 January 2010.

• The temperature-monitoring rules apply to QFF transported by rail from 1 January 2006.

• Businesses must keep all relevant documents showing that instruments meet the relevant European standard(s).

Existing rules:

• QFF must be made from food that is sound, genuine and of merchantable quality that is fit for human consumption.

• The food must be frozen and have crossed the zone of maximum crystallisation as rapidly as possible for that type of product.

• Only air, nitrogen or carbon dioxide may be used as the cryogenic medium in contact with the food.

• The temperature on thermal stabilization must be -18°C or colder. This temperature must be maintained except for brief periods during transport (including local distribution) where it may reach -15°C, or when in retail display cabinets where it may reach -12°C.

• The food must be pre-packed to prevent contamination and dehydration. The packaging must remain until the food is placed on the market, for example quick frozen fish must be kept in its packaging until displayed for sale.

• Businesses must date temperature recordings and store these for at least one year or longer, depending on the nature and shelf-life of the QFF.

Exemptions

Exemptions are still in place for air temperature monitoring when QFF is in retail display cabinets and during local distribution. In these cases at least one easily visible thermometer must be used to measure the air temperature. For open retail display cabinets, the maximum load level line must be clearly marked and the thermometer must measure the air temperature at this line at the air return side. The cabinet should not be filled above the line. The exemption for cold store facilities of less than 10m3 for stock in retail outlets has also been continued. In such cases, rules allow the air temperature to be measured by one easily visible thermometer.

Where the above exemptions apply, there is no requirement to keep temperature records.

Labelling

QFF to be marketed as such to the ultimate consumer or to a caterer must have on the label, in addition to normal labelling requirements:

• ‘Quick frozen’.

• The date of minimum durability – a ‘best before’ date.

• The maximum advisable storage time.

• The temperature or the equipment that should be used to store it.

• A batch or lot mark.

• Wording such as ‘do not refreeze after defrosting’.

QFF for further processing must have on the label:

• ‘Quick frozen’.

• A batch or lot mark.

• The name (or business name) and address of the manufacturer or packer, or a seller in the EU.

Background

The Quick Frozen Foodstuffs Regulations 20071 replace the Quick Frozen Foodstuffs Regulations 1990. Their purpose is to protect the quality of QFF. Other legislation deals with safety, wider labelling and commodity specific requirements. These rules are not covered here. Many existing rules on QFF are continued, including rules for enforcers about sampling and temperature analysis. New are enforcement and penalty provisions for rules about temperature monitoring instruments, which are set out in EC Regulation 37/20052.

Rules for enforcement officers

If there are reasonable grounds to believe that QFF has not been kept at the right temperatures, the QFF and temperatures must be further inspected. The specific procedures for this are included in the Food Law Code of Practice and associated Practice Guidance for England, Scotland, Wales and Northern Ireland.

Further information

For more details contact:

Standards and Sustainability Branch ,  Food Standards Agency,  Tel 020 7276 8154

 

 

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The cost of business travel has increased dramatically with the rise in fuel prices.

 

Companies are looking for new ways to cut travel costs with improved technology and the adoption of 'green' alternatives.

 

However, managing the travel generated by business is not only about reducing environmental impact. Travel planning provides tangible financial benefits and improves productivity, saving both businesses and workers money and time with:

• reduced mileage claims and other business travel costs
• reduced staff downtime spent travelling on business
• reduced costs of running a fleet
• reduced tax liabilities

There are further, indirect benefits of reduced business travel, such as:

• meeting recognised environmental standards, such as the ISO 14001
• improved staff satisfaction – less absenteeism and better staff retention
• reducing CO2 emissions can support your corporate social responsibility policy
• Reducing the cost of your business travel requires serious thought and planning.

This article gives you a quick overview of four routes to smarter travel in your business.

 

1. Better use of technology

Can you find lower-cost, easy-to-implement technological alternatives to travel which can also reduce your business overheads?

Web conferencing has now reached a high level of sophistication. It's possible to meet with customers and colleagues, give presentations, demonstrate products, conduct training and share documents online, in real-time. The latest web based solutions mean that you can access high quality audio-visual conferencing using only your computer and standard broadband connection – no investment is needed in new hardware or expensive conferencing suites.

 

For more help and advice visit the website of the Work Wise UK - Opens in a new window not-for-profit initiative, which aims to make the UK one of the most progressive economies in the world by encouraging the widespread adoption of smarter working practices.

2. Better planning

If your company runs even the smallest fleet, there are many options and questions to consider.

• Should you offer pool cars or company cars?
• Can staff share cars and plan journeys more effectively?
• Is there a car club you could join in your area?
• Should you use fuel cards or reimburse employees when they fill up?
• Are technologies like telematics or hybrid cars really worth it?
• Should you have a policy for when journeys are permitted and when they're not?
• How could you reduce emissions from your 'grey fleet' ie mileage in employee-owned vehicles?
• Which are the greenest vans?

The answers to all these questions will vary according to your individual business needs. The Business Link sustainability team can offer help and advice on all aspects of low emissions transport including subsidised driver training, alternative fuels and car fuel data. Contact them at sustainability@businesslinksoutheast.co.uk.

3. Working differently/smarter working

With virtual team-working your employees do not need to be working in the same place, or even at the same time, in order to work together.

Consider the following options.

 

Different time, different place – employees work separately and keep in touch with you and each other via email or fax.

• Same time, different place – employees can communicate with each other in 'real time' through telephone conference calling, video-conferencing or using instant messaging.
• Different time, same place – employees can access your business network or databases by connecting to an intranet or extranet. A virtual private network is a more secure, but expensive, way of doing this.
• Same time, same place – even working from home, your employees will still need to meet face-to-face occasionally. Email and electronic diaries allow you to arrange meetings and transfer documents, while wireless technology allows you to meet anywhere.
• Any time, any place – mobile phones and laptop computers with wireless internet access mean that your employees are always accessible and can work wherever they are.
• Home-working is 'family friendly' and 'business friendly'. There is strong research evidence to show that remote and flexible workers are more productive more reliable and more loyal than their office based counterparts; they have a better work-life balance and waste less time and money on unnecessary travel.
• Telework cuts overheads by reducing the amount of office space required whilst increasing the output from employees. Find out how to facilitate teleworking with our guide about employees working from home.

 

4. Alternatives

For short business journeys, and used in conjunction with public transport, walking and cycling can provide alternatives to the car which are both practical and cost-effective.

You can encourage walking and cycling with a clear indication in your company transport policy as to when and how journeys should be substituted.

The Cycle to Work scheme offers a way to dramatically cut the cost of cycles to employees. Find out more about tax-free bikes at the Cyclescheme website.

Transport Direct - Opens in a new window is a useful tool with which to promote public transport as an alternative to the car to your staff. It compares door-to-door journey by public transport and car within Great Britain, with details of times, routes, costs, as well as car park information and relative carbon costs. Why not display the web address on all relevant administrative documents and resources?

Source: Business Link

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Tesco Comes to the Aid of Workington

 

Tesco will be opening a supermarket in flood damaged Workington, in the UK. The community was torn in half when flood water swept away bridges over the river Derwent, or made them unsafe.

The temporary Tesco store will sell a basic range of goods and groceries, and will be built on Siddick Road, in Northside, was opened on 14th December 2009.

The Tesco main supermarket is in New Bridge Road, and will continue to trade, but it is cut off from thousands residents and customers from the other bank of the river Derwent. Many of Tesco's staff face problems getting to work, with the loss of bridges, it means an extended journey.

The temporary shop will open seven days a week, for food, drinks, newspapers and magazines, health products and alcohol.

 

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New trends emerging in supply chains, corporate finance and workforce dynamics

Recession has raised concerns about commercial models, supply chains and finance that will reshape business behaviour well into the next decade, the CBI said today.

Launching its report "The Shape of Business - The Next 10 Years", the UK's leading business organisation said that the recession and credit crunch had become the catalysts for a new era. The report flags four key areas of UK business where fresh approaches will develop because of the downturn:

- Businesses do not see credit terms falling back to pre-crunch levels and, having become wary of higher debt levels, firms will look to alternatives to debt-driven growth to protect investment and innovation. More financing options will be created and deployed.

- Companies will reorganise and re-examine their approach to working with partners - from suppliers to universities, and even competitors. Ongoing concerns over a 'domino effect' of supply chain failures and issues around trade credit insurance will compel firms to forge more collaborative supplier relationships.

- Sustainability and ethics will become more integrated into the business model. Firms will seek to improve accountability and corporate citizenship further to attract and retain customers and staff.

- A more flexible workforce will evolve, assisted by developments in technology and training, and building on the spirit of collaboration between employers and staff which has grown over the recession. For some firms that might mean a smaller core workforce and a larger 'flexiforce'.

Richard Lambert, CBI Director-General, said:

“We may be at the start of a new era for businesses, in which attitudes to finance and to corporate leadership are changed for a generation by the shock of the past two years.

"What we now need is a more balanced, less risky pathway to growth – one in which the short-term returns may be lower, but the long-term rewards for management success will be a lot more sustainable and secure.

"There are important questions around how businesses are going to finance growth and investment in the future. And in a more collaborative, less transactional world, closer relationships with customers, suppliers, employees and shareholders look like becoming the new norm.”

Many of the report's findings are supported by a new survey conducted by Ipsos MORI in October and November and sponsored by the CBI and business advisory firm Deloitte. The survey of business leaders, mostly CEOs and chairmen, and representing a UK workforce of almost 1m and a global turnover of around £1trillion, revealed a shift in attitudes towards financing and supply chains. Over half (55%) said that they will now only tolerate a lower level of risk from gearing and, within that group, 70% said an economic recovery would not reverse their position. Two thirds (68%) expect no improvement in credit availability in 2010 and are reshaping their business financing: 50% said they would use less bank debt, 44% said they would rely more on equity finance, and 26% said they would make more use of bond issuance.

And when asked about supply chain fragility during the recovery, only 24% said that they are not concerned. Businesses were most worried about a unique, specialist supplier going bust; that the supplier's own supply chain would collapse; and that the supplier would be unable to obtain working capital.

Because of these ongoing threats, 68% of firms said they would be strengthening the level of partnerships with suppliers in the coming years. One in three (30%) said they would be increasing their number of suppliers. And around one in five said they would be offering finance to key suppliers, reducing dependency on 'just in time' processes, and shrinking geographic distances to suppliers.

Richard Lambert added:

"Firms looking to reduce risk and acknowledge their interdependence are seeking more collaborative ways of working through partnerships and joint ventures. Perhaps we will see a flourishing of supply chain finance – in which firms with the largest, most solid balance sheets help finance their smaller suppliers or customers.

"Businesses want to adapt to a harsher credit climate by finding new sources of funding. Why not encourage new forms of institutions to finance the growth of small and medium-sized enterprises through equity and debt? And why not make it easier for companies to raise money locally, perhaps through new regional banking and investment institutions, rather than having to rely on a few very big players in London and Edinburgh?"

John Connolly, Senior Partner and Chief Executive of Deloitte UK, said:

"The findings of this survey are consistent with those in Deloitte’s Quarterly CFO survey. We know that companies have identified certain long-term responses to the events of the past two years such as a more cautious approach to debt and, more generally an attitude of greater financial conservatism. "We can recognise that many businesses have proven resilient to the effects of the downturn: profitability has taken a knock but the impact has been less pronounced than might have been expected. Corporate insolvencies are running at significantly lower levels than the recession of the early 1990s and unemployment, whilst still growing, is not as high as some people feared. The route to recovery is sure to present challenges, but UK business has shown it has the ability to respond with imagination and flexibility."

The survey, "Recession as a Catalyst for Change", also showed that higher credit costs are hitting business investment plans. However, investment for a low-carbon economy seems to have escaped the squeeze, and 88% said they would invest as much as planned before the recession, and 27% said they were planning to spend more than planned. Government policy on green issues is vital however, with two thirds (65%) citing it as an important influence on investment decisions.

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CBI actively awaiting positive Copenhagen result

 

As the crucial UN climate change conference draws to a close on Friday, the CBI has been in Copenhagen this week in order to engage with members and reiterate its calls to delegates for a positive outcome to the talks. Having clearly established business' five essential requirements for a deal in advance, the CBI remains committed to carbon reductions of 80 percent by 2050. The challenge is however bringing other countries to match that level of ambition without the UK getting too far ahead that the pollution is simply exported. Once we have looked at the details of an agreement at the end of the Copenhagen talks, then it may be right to move to a 30 percent emissions cut by 2020. But the CBI will not prejudge the outcome of these difficult negotiations.

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Calculating the national minimum wage where a worker always receives overtime or shift payments

The recent case of Hamilton House Medical Ltd v Hillier makes clear that, when deciding whether or not an employer is complying with its obligation to pay workers no less than the National Minimum Wage, premiums paid for overtime or shift work will not be taken into account, even if the worker is only ever paid at the premium rate. Regulation 31(1)(c)(i) of the National Minimum Wage Regulations 1999 makes clear that the amount by which any overtime or shift payment exceeds the “lowest hourly rate” payable to a worker will not be taken into account when deciding whether a worker has received the National Minimum Wage. However, prior to this case, it was not clear how this provision applies where a worker only ever works at the premium rate.

Mrs Hillier’s basic rate of pay, stipulated in her contract, was less than the National Minimum Wage. However, in practice, she always received more than the National Minimum Wage as she only ever worked nights for which the rate of pay was the basic rate plus 30%.

She claimed that her employer was in breach of the National Minimum Wage Act and they sought to defend the claim on the basis that the rate of pay which she received for her night work was, in fact, her basic pay as she only ever worked nights, notwithstanding what was contained in her written contract.

An Employment Tribunal found against the employer and their subsequent appeal to the Employment Appeal Tribunal (EAT) failed.

The EAT held that “the philosophy of the National Minimum Wage Regulations is clearly that an employee's basic minimum wage before overtime enhancement or other allowances should not fall below the statutory minimum and ... it would be completely contrary to the purpose of the legislation if that obligation could be avoided simply because an employee chooses to normally work those hours when she would be in receipt of some enhancement".

Comment

In light of this case, it is clearly vital that all basic rates of pay amount to the National Minimum Wage or above, excluding premiums for overtime and shift work. This remains the case even if the employee only ever works nights or weekends at an enhanced rate of pay. As such, employers are urged to check the contracts of employment that they have issued to workers and increase any basic rates of pay stipulated which fall below the National Minimum Wage even if, in practice, the employee always receives an enhanced rate of pay which exceeds the National Minimum Wage.

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Employment matters: the ‘at a glance’ guide to employment law.

“Employment matters” is a popular and reliable handbook on employment law, written by members of Hill Dickinson’s employment team. Now in its third edition, it covers a wide spectrum of employment law in a simple and accessible way. The handbook provides guidance on the main aspects of the recruitment of employees, the contractual relationship between employer and employee, discrimination, the termination of employment plus other statutory rights and obligations.

Thoroughly revised to take account of all the most recent changes in this evolving area of law, this edition covers the new compensation limits announced by the Government which came into force in October 2009. “Employment matters” is available as a printed handbook or as a “download” from the Hill Dickinson website.

Click here to download the "Employment matters" handbook >>

 

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