‘A dark legacy’: unions voice fears over global logistic firm’s spinoff

Business‘A dark legacy’: unions voice fears over global logistics firm’s spinoffUS-based XPO Logistics has boomed during the pandemic but its reorganisation is causing concern Michael SainatoThu 23 Sep 2021 12.08 EDTLast modified on Thu 23 Sep 2021 12.38 EDTThe pandemic has been a boon to XPO Logistics, the transport giant that delivers the goods for a global companies including retailers from Asos and Walmart. It reported record revenues of $5bn (£3.6bn) last quarter as it helped to ship everything from washing machines to frozen fruit around the world.To make the most of the boom, the US-based multinational has just completed the process of dividing itself in two, with the warehouse and e-commerce arm becoming a separately listed corporation called GXO Logistics. But the road ahead does not look trouble-free. Union leaders in the UK and US are sounding the alarm, pointing to the “dark legacy” of a corporate culture they fear will taint the reorganised businesses.In the UK, where the company delivers an estimated 40% of the beer consumed in British pubs, the trucking division narrowly avoided a strike last month over a below-inflation pay offer, which was later increased. While XPO accepted £100m from the government’s job support scheme during the pandemic, its furloughed workers effectively took a pay cut, because the scheme covers 80% of wages and managers rejected requests to top-up the final 20%.Disputes were further inflamed by XPO’s decision in May to override objections from shareholders …

23/09/2021