Relationship of UK Sample Clauses

Relationship of UK large customers and their suppliers The main large customers of organic food and drink in the UK are supermarkets. Recent articles in the business press portray the current retail industry in UK as being characterised by a number of problems and uncertainty. The sources have pointed out that there prevails a poor relationship between some supermarkets and their suppliers (SMEs) in the UK. To protect suppliers, a voluntary code of practice was introduced in 2000 though only a tiny number of complaints have been filed under the code because suppliers appear to be afraid that they will lose business if they come forward (Xxxxxx 2007). Although its not clear if the enforcement will be successful, a Grocery Supply Code of Practice came into force in February 2010 (Friends of the Earth 2010). This is expected to stop the bullying tactics of supermarkets towards suppliers. The Code of Practice is designed to promote fairer dealing between supermarkets and their suppliers and prohibit the biggest food retailers from unfair buying practices, such as retrospectively changing terms of trade (Friends of Earth 2010). Some supermarket giants have been accused of slowly throttling any chance of any profitability out of the UK growers, with last minute price drops on produce that has to be picked that day, forcing some growers to produce, pick, and pack at a loss whilst supermarkets are still taking the profits made at the tills for themselves (Worcester 2007). Although there is an anti-monopoly legislation in the EU to stop major producers from abusing market dominance, there is no legislation that is specifically designed to tackle abuses of supermarket buyer power (AAI 2007). The EU is experiencing retailing that is dominated by a small number of supermarket chains. As supermarket chains grow in size, the balance of power between them and other actors in the supply chain, from workers, suppliers, through to consumers, are disrupted thereby causing negative consequences (AAI 2007). Due to the dominance of a limited number of supermarkets in the retail sector, a characteristic of oligosponistic markets, then suppliers are dependent on very few supermarkets to get their products to the market and the supermarkets have been accused of unilaterally dictating terms and prices to their suppliers. As a coping mechanism, the suppliers demand from their workers longer hours at a faster pace, with worsening working conditions and job security. The situation is exacerbated by the ...