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| Bad blood between FloraHolland and wholesalers | |
Dutch flora wholesalers have filed suit with FloraHolland over the flower auction’s unilateral decision to significantly raise certain auction tariffs in 2013. Backed by Floral Wholesalers Association VGB, the traders demand the annulment of the auction’s decision to set the 2013 tariffs, arguing it violates the standing regulations which demand prior negotiation.
Those auction procedures seemingly state that only tariffs which have been approved by VGB’s trade delegation are to be considered binding on the wholesalers. FloraHolland has autonomously decided to raise all the tariffs at its various establishments to the level of those at the Aalsmeer auction, where they happen to be highest, however. That amounts to a major cost increase for a large number of the auction’s flower traders.
Approval for such a change has certainly not been given, VGB executive Robert Roodenburg points out. “In fact, they did not even negotiate with our delegation. While we were still studying the suggested rate increases, our members were already notified through email what they were supposed to start paying next year”, he protests.
The Dutch flower auction cooperative has stated in a subsequent announcement that it ‘regrets’ the move by the flora wholesalers to take the matter to court. While FloraHolland “understands the criticism from the perspective of individual wholesalers”, the auction considers the tariff changes necessary for the sake of ‘transparency and future sustainability’.
The new system aims for uniformity and does not in fact increase FloraHolland’s total cash influx, but merely harmonizes differing rates, they state.
Regarding the wholesalers’ complaint that the auction has single-handedly set the rates, FloraHolland states that it has ‘handled according to the auction principles’. “[We] look for consensus where possible and consider the VGB an important discussion partner. FloraHolland also has its own responsibility to come to a decision, for example where it concerns tariffs, however”.
The Floral Wholesalers Association has, in response, drafted a standardized letter which traders can use to make their anger with the flower auction known.
Sources: FloraHolland, 03 December 2012 |
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