Welsh Wholesaler Castell Howell Foods ‘forced to increase wages’

Welsh foodservice wholesaler Castell Howell Foods has declared that it has been forced to increase driver wages by 24 per cent since April in a bid to combat the labour shortage crisis, stated the latest media reports.

Claiming that competition for warehouse staff has increased in recent months due to Amazon’s fulfilment centre in Swansea, finance director Nigel Williams told a media outlet that the company has also increased pay to workers in its six depots by 8 per cent.

The wholesaler has reported a fall in sales of 28.4 per cent to £102.5m for the 12 months to 31 October 2020, as per reports, which also added that at one stage sales were down 40 per cent but are now returning close to pre-pandemic levels.

The wholesaler is operating with 100 lesser employees as compared to pre-pandemic times. To mitigate the current staffing issues, Williams revealed that it has made some changes in the deadline for next-day delivery forward to give staff more time to pick and load goods.

Back in June, Castell Howell had highlighted how transport and supply issues are hampering food and drink supply in the UK by contacting customers to highlight the significant challenges faced by the sector.

It was reported earlier that shortages of key staff and problems faced by some suppliers have resulted in the Welsh wholesaler being forced to make some “uncomfortable” decisions and changes in its operation, including having to pass on some supply chain price increases.