The ugly face of capitalism - Aussie Stock Forums

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  1. #1

    Default The ugly face of capitalism

    The ugly face of capitalism.

    Coles refunds millions of dollars to suppliers over ACCC case on recommendation from former premier Jeff Kennett

    The Coles supermarket chain has refunded millions of dollars to suppliers as part of a dispute resolution process.

    Coles appointed former Victorian premier Jeff Kennett as an independent arbiter after the Australian Competition and Consumer Commission (ACCC) took the company to court over claims of unconscionable conduct towards its suppliers.

    Mr Kennett recommended the supermarket suppliers, including farmers and food processors, be awarded financial settlements as part of that process.

    In December last year, the Federal Court found Coles had demanded payments from suppliers to which it was not entitled by threatening harm to suppliers, and withheld money from suppliers it had no right to withhold.

    The court ordered Coles to establish a formal process to provide for redress for over 200 affected suppliers.
    In response, the supermarket appointed Mr Kennett to deal with suppliers seeking compensation and undertook a binding agreement to act on his recommendations.

    Since then, Mr Kennett has visited up to 150 suppliers across the country hearing evidence and determining whether they were entitled to a refund from the supermarket.

    "I have awarded, based on submissions made to me, evidence placed before me, a substantial amount of refunds to those I thought were entitled to them," Mr Kennett said.

    While he would not be drawn on the exact figure, he said it came close to the $10 million Coles was ordered to pay following the ACCC Federal Court action.

    "They've paid a fine of $10 million and certainly the refunds that I have ordered are approaching that figure again," Mr Kennett said.

    "It's been a substantially expensive exercise for them, but I believe a great deal of good will come out of it for the suppliers and for Coles."

    Mr Kennett had previously been critical of Coles, particularly for selling "fresh" bread that had been pre-baked in Ireland.

    He expects to conclude his role by the end of June and said he was now confident that Coles had improved its dealings with suppliers.

    "When I talk to suppliers now, many of them are saying there has been a noticeable change in the relationship between they and Coles," Mr Kennett said.

    "In many cases it was always good, in some cases it was less than good. They are now saying that the relationship is a lot better than it was as little as five months ago.

    "Coles has already made some changes, but this is a work in progress and they are undertaking a much bigger review.

    "It takes a lot of time to turn a big ship around, but I'm hopeful by the end of this year, Coles will have in place a much better practice."


    If this company had any integrity at all they would sack the people who made those threats, but I bet they upper management knew all about it it and approved of unethical conduct.

  2. #2
    CanOz's Avatar
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    Jul 2006
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    Default Re: The ugly face of capitalism

    Why is this the ugly face of capitalism, not the ugly face of a duopoly or, the ugly face of crooked supermarkets? I don't get it...

  3. #3

    Default Re: The ugly face of capitalism

    Quote Originally Posted by CanOz View Post
    Why is this the ugly face of capitalism, not the ugly face of a duopoly or, the ugly face of crooked supermarkets? I don't get it...
    You could call it those things, but it's a fair bet that the same things go on in other business areas where the desire for profits outweigh ethical considerations, like the Four Corners episode about exploitation in the food industry, or Gina Rinehart paying workers $2 an hour.

  4. #4
    sydboy007's Avatar
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    Dec 2012
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    Default Re: The ugly face of capitalism

    While I'm happy that Coles received a slap with some wet lettuce, lets not forget the pillaging that the Banks and financial advisers have been doing for years.

    It reminds me of an old saying that goes something like they sold their morality and were living well off the proceeds.
    A budget tells us what we canít afford, but it doesnít keep us from buying it.

  5. #5

    Default Re: The ugly face of capitalism

    Just been watching a show on ABC "The Super Rich and us."

    Certainly explains just how extreme Capitalism has taken over our world in the last 20-30 years. It's set in England but there is plenty to think about for us.


  6. #6
    skc's Avatar
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    Aug 2008
    The dark side
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    Default Re: The ugly face of capitalism

    This is not a bad doco... that talks about some of the issues.


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