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With DHL Excel Supply Chain and Wincanton being hit by retailers MFI and Woolworths going into administration, the National Union of Rail, Maritime and Transport Workers (RMT) insists the government must intervene before the logistics chain crumbles.

DHL has confirmed  that its Thorne Distribution Centre in Yorkshire – where 350 staff are based – may be affected by MFI's administration, and Wincanton says redundancies are expected for some of its 188 dedicated Woolworths staff at Castleton and Swindon.

RMT general secretary Bob Crow argues that the Government must help the retail sector financially in the same way it has helped failing banks. He claims Woolworths' collapse "will also have a domino effect which will threaten jobs in the transport and road freight sector and way beyond".

Under its five-year contract with MFI, DHL was to invest £11.6m of its own capital to run the furniture firm's Thorne Distribution Centre.

Crow adds: "Ordinary working people have the right  to expect direct intervention to save the real economy."

Since the retailers went into administration on 26 November, DHL has vowed to keep staff in question informed, and Wincanton is liaising with the administrators of Woolworths to track any developments that will affect its workforce.

A Wincanton spokesman adds that in the case of redundancy, it will try to redeploy as many employees as possible across the network.