Linfox-owned Armaguard receives $50m lifeline from major banks and retailers

Armaguard has reached an agreement with its biggest customers to receive a $50 million to ensure cash is transported around Australia for at least the next 12 months.

The agreement with ANZ, Australia Post, Coles, Commonwealth Bank of Australia, National Australia Bank, Wesfarmers, Westpac and Woolworths comes after a series of roundtables led by the Reserve Bank of Australia to discuss the sustainability of the wholesale cash distribution system.

Armaguard has blamed the rapidly declining use of cash for its financial problems, with cash purchases falling from more than 60 per cent in 2010 to just 13 per cent in 2022.

“This is not a contest between the parties. There are no winners and losers here,” Linfox Armaguard executive chairman Peter Fox said.

“No other nation has major banks, retailers and key distribution companies working together to achieve a more efficient Cash-in-Transit industry. Armaguard is also leveraging the expertise of its other shareholder, Prosegur, which is one of the world’s leading cash companies.”

The TWU said it welcomed the deal.

The union said approximately 1400 workers employed to move cash around the country have suffered uncertainty over recent months.

“This deal is a welcome relief to our members who have faced months of uncertainty and troubling headlines about the future of their employer, said TWU national assistant secretary Emily McMillan.

“While this news brings optimism of job security for the next year, wealthy banks and retailers must ensure the long-term viability of cash-in-transit operations by stopping the squeeze on transport contracts for a service our community needs.

“Regional communities and many in society still rely on cash transactions. It is a dangerous job to move money around this country, with armed hold-ups and workplace deaths tragically known to the industry.

“Cash-in-transit operations and drivers must be paid appropriately to avoid additional pressure to cut corners in safety to remain financially viable.”

The agreement, which comes into effect from July 1, subject to ACCC approval, also includes a commitment by the parties to work together to develop an independent pricing mechanism to support a sustainable cash delivery business past the 12 month timeline.

1 Comment

  1. Cash is critical for financial freedoms. Mark my words that they will force digital money on us very soon, when that happens you will own nothing and be happy apparently. Return to cash & stop using tap and go if you want to keep your financial freedom.

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