How do I protect my business from supply chain interruptions?

The recent experience of Ford Australia being required to stand down 1800 staff in response to supplier CMI Industrial being locked out by its landlord highlights the importance of effective business interruption strategies. If your business operates in an industry which requires multiple suppliers of product at low margins you will need to be prepared for interruption of supply, both upstream and downstream.

There are a range of actions that an employer can take where it may be exposed to the risk of a forced temporary shut down or reduction in production, resulting in a temporary surplus of labour.

Laying off supplementary labour

If you supplement your workforce with on-hired workers supplied by a labour hire agency, your capacity to cease or reduce the supply of those workers at short notice will depend on the terms of the relevant labour supply agreement. These agreements will usually contain provisions dealing with the notice required to change labour