Menzies Distribution is to increase its carriage charge for the second time in less than six months. The rise is to compensate for increased labour costs caused by the forthcoming National Living Wage.
Usually, the news wholesaler reviews its carriages charges in the summer, with the new templates taking effect from September, but it has concerned the NFRN by announcing that it intends to raise charges by 3.7% from 3rd April.
Explaining its action, Menzies Distribution said the implementation of the National Living Wage would “create the most substantial shake-up of our supply chain’s cost base for many years” and that the company would be “heavily impacted by this”.
Responding, NFRN Chief Executive Paul Baxter said: “While we can understand the concerns that Menzies has about the forthcoming National Living Wage, does it not realise that news retailers are also facing rising labour bills? But unlike news wholesalers, independent retailers do not have the opportunity to pass these onto their customers in the form of increased prices.
“Retailers are operating in a supply chain that is archaic and monopolistic and this sudden and unexpected announcement from Menzies will cost jobs, will cost livelihoods and, most important of all, could deprive communities of their only shop.”
