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Fury over Premier Foods ‘pay to stay’ scheme


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It's been worded badly that's all.

 

Let's for argument sake say they stand to make £1m from this. If they went to each supplier and said 'drop your prices by x% or we'll go elsewhere' then they would probably make a saving, possibly the £1m they are getting from this.

 

Those that didn't agree would lose the business.

 

Nobody would bat an eyelid at that, and everything would be the same.

 

And that happens everyday.

 

so, other than the bad presentation, there isn't really much to complain about.

 

But that's not the analogy...

 

PF are saying that if you bung us £xxxx then we MAY if we feel happy consider you and may buy stuff from you. But someone else may be cheaper. But we will still take your £xxxx anyway.

 

It's not just a lowering of prices. If it was, it'd be fine - and PF would just say we are going to pay less like it or lump it. This is subtly different, especially since PF are a large part of the market, possibly dominant in the market and this may therefore be abusive of a free market.

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I like how they're stressing its not illegal, as if that makes it all OK.

 

Well isn't that just the 'catch all' of our times? It's the same with tax dodges - it's not actually illegal so it must be alright. And you hear people on here actually defending them....

 

Morality seems to have gone out the window.

 

We will get the society we deserve unless we stand up to these sort of practices, but as usual British 'stoicism' or downright apathy depending on your point of view, means nothing is done about it. And the more these companies get away with, the more they will push it.

 

Don't expect the government to put it right either, they really couldn't care less, and anyway it's their mates who come up with these schemes in the first place. A nice little earner.

 

We are slowly but surely being driven into the ground.

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It's up to companies to do business with each other. If their conditions are unfair, the suppliers will find someone else to supply to. Or set up their own subsidiary to have vertical integration. I don't see what business it would be of the governments, unless Premier Foods are reneging on an existing contracts with their suppliers.

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I heard a very interesting discussion today about whether this action could actually be a crime under the current laws about abusing a dominant position in business. Of course this would depend on the answer to 2 questions- is Premier Foods in a dominant position for these other businesses? and is their request for payment an abuse of that position?

 

It sounds very much like a protection racket to me, either way round.

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Well isn't that just the 'catch all' of our times? It's the same with tax dodges - it's not actually illegal so it must be alright. And you hear people on here actually defending them....

 

Morality seems to have gone out the window.

 

We will get the society we deserve unless we stand up to these sort of practices, but as usual British 'stoicism' or downright apathy depending on your point of view, means nothing is done about it. And the more these companies get away with, the more they will push it.

 

Don't expect the government to put it right either, they really couldn't care less, and anyway it's their mates who come up with these schemes in the first place. A nice little earner.

 

We are slowly but surely being driven into the ground.

 

 

Morals dont pay the bills or put food on the table. cold hard cash does that.

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Morals dont pay the bills or put food on the table. cold hard cash does that.

 

Sorry, but morals are important in life. So is integrity. Heaven help us in a future without them....You are talking as one who knows the price of everything but the value of nothing.

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