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Highlights:

  • Full outsourcing of agency labour services under a two-year contract with a one-year extension option
  • Mobilisation of around 3,000 temporary workers across warehousing, security, and driving roles is expected to begin late Q2 2025
  • Contract spans chilled and ambient operations, including management of second-tier staffing suppliers

Staffline (AIM: STAF) has entered into a significant partnership agreement with a leading food and drink logistics provider operating across the UK and Ireland. The contract covers the full outsourcing of agency labour services currently managed by the logistics provider's in-house workforce division.

Under the terms of the agreement, Staffline will assume responsibility for the supply and coordination of approximately 3,000 temporary staff supporting the client's warehousing, driving, and site security functions. This includes both chilled and ambient distribution environments. The initial contract duration is two years, with an option for a one-year extension, indicating a potential longer-term partnership.

The transition is scheduled to commence toward the end of Q2 2025 and will continue into Q3. Staffline will also manage secondary labour suppliers as part of the broader service delivery framework, consolidating multiple staffing streams under one primary provider.

The logistics provider, which operates extensive food and drink supply chain networks throughout the UK and Ireland, has opted to move away from its internal staffing model in favour of outsourced workforce solutions. This decision reflects wider industry trends as companies seek flexible, scalable labour support in response to ongoing market pressures and fluctuating demand in the logistics sector.

Staffline’s role will involve not only the sourcing and onboarding of temporary personnel but also oversight of third-party agencies currently engaged in service provision. The Group will be tasked with implementing consistent employment practices, compliance procedures, and workforce management tools across multiple client locations.

Albert Ellis, Chief Executive Officer of Staffline, stated that the new agreement represents a key development in the Group's logistics sector operations and aligns with efforts to streamline workforce delivery models for large-scale employers. He noted that preparations for the operational handover are already underway, with a focus on ensuring minimal disruption to ongoing logistics activities.

This agreement builds on Staffline’s existing experience in providing labour solutions to clients within food manufacturing, warehousing, and distribution. By centralising staffing supply through one provider, the client is expected to benefit from simplified labour planning, improved service visibility, and increased operational consistency across sites.

The new contract is anticipated to have a material impact on Staffline’s operational volumes during the second half of 2025, as the phased rollout of workforce mobilisation is implemented. The company will continue to work closely with client leadership throughout the transition period.