Anger over new Whitcoulls staff contracts
NICK KRAUSE
Relevant offers
Industries
The National Distribution Union says it is outraged at proposed contract changes for staff at Whitcoulls and Borders, which were sold last week by administrators.
The contracts, given to staff on Friday to review over the weekend, scrap any previous redundancy payments and force workers to sign away any claims or grievances from their previous employer.
Employees have been given until the end of today to sign up to the new agreements. The union is calling for the contracts to be withdrawn and is seeking legal advice.
NDU general secretary Robert Reid said last week's ''cautious optimism'' about the deal has turned to outrage.
''Never in my 30 years of working as a trade unionist have I ever seen such a blatant ruse to force workers to sign out of their rights and entitlements in a business transfer situation,'' Reid said.
''Whitcoulls workers are being asked to sign away any entitlement to redundancy compensation, notice of termination of employment and any claims or grievances from their previous employer. If the administrator made workers redundant today, it would have to make a lieu-of-notice payment and redundancy payment, up to a cap of $18,600 per person.''
Reid said under this agreement, the new owner James Pascoe Group could hire a worker for one week and make them redundant the following week with no redundancy compensation.
''Even at a conservative estimate, the 900 Whitcoulls workers in the sales process could have lieu payments and redundancy entitlements of $5000 each.
''This means that Whitcoulls' workers are being forced to contribute almost half a million dollars of entitlements to the sale....it could well be double that.''
Reid said Farmers' workers who were NDU members had a redundancy clause in their collective agreement with the chain of department stores.
''The NDU still believes that this is a good sale for the future of book retailing in New Zealand, but it should not be premised on the slashing of working conditions of the loyal staff.''
But new owner David Norman told BusinessDay he promised all workers would be better off under the new ownership. He also took exception to the NDU's attempt to sour the deal.
''The offer of employment is on terms consistent with the majority of those employed by the James Pascoe Group, there is a little give and take required but in my opinion all staff members will be better off plus when certainty of employment and staff purchase benefits are added, the team at Whitcoulls will be considerably better off,'' Norman said.
He said the union in the past had to try to paint the family as "mean" employers and even resorted to picketing their home.
''This is indeed a good news story and it would be disappointing if the union tried to sour the deal,'' he said.
''The team at Whitcoulls have my word that they will be better off under the ownership of Anne & David Norman and the leadership of (MD-designate) Ian Draper.''
The Normans, owners of jewellery chains including Pascoes and department stores Farmers, on Thursday bought the Whitcoulls and Borders chains for an undisclosed sum from Australian entity REDgroup Retail.
REDgroup collapsed three months ago under huge debts and was placed in voluntary administration.
David Norman said last week they hoped to avoid any closures of the 57 Whitcoulls and five Borders stores but it would depend on talks with landlords and others.
"But should the very worst occur, then we pledge to offer any affected staff alternative employment."
The purchase by James Pascoe, a Norman-associated company, from administrators Ferrier Hodgson followed a hiccup in the sales process two weeks ago when the two parties hit an impasse over job security for the New Zealand staff.
- © Fairfax NZ News
Sponsored links
To all those of you stating DONT SIGN, how easy is it for you to say that while sitting at your desk working away. The Unions are fudging the truth and anyone who actually understands employment law would laugh at this. Firstly they are being offered another job so there's no redundancy, so no $5000 for anyone. Secondly the new company are not obligated to any one that held a contract with the old owners and can legally tell them all to bugger off and re advertise their jobs if they so choose to, the fact they have saved the company and offered most of them a job should be celebrated. Unions are a hangover of the 50's and that was about the last time they actually held any power or influence, this is a beat up from the Labour Party no more no less. If you don't like rich people no problem but don't slag people for having what you do not aspire to or will never have due to lack of will power and detirmination.
Funny. When faced by a smiling cashier at Whitcoulls, I suggested that she must have received a good deal. Her reply was that she and her colleagues were 'happy campers', non-unionised and looking forward to working under their quality New Zealand employer. This reinforces my views that (a) unions are too often a blight on our landscape and (b) not much of what we read can be trusted. C'mon New Zealand, let's shake off these anachronistic labour cultures and undercut, if necessary, our lazy neighbours, northwest of us.
If these shops were not going under, were bought out by an international firm, then these contracts were introduced, would the comments here be more supportive of the workers? Or of the union for advising employees of rights? I'm struggling to understand why anyone would knock employee rights. The only reasons I can think of are that either people have envy- they don't have unions or contracts or jobs so why should anyone else? -or people view these Australian companies as saviours wielding the Holy Grail of corporate success, so NZers should be on bended knees with gratitude.
Something is seriously wrong with the 'average NZer' if they believe people, who may have been contributing to company profits for many years, are lucky to have an unstable job with an uncertain future and no chance of reduncy payout.
If the previous management actually did their job, this would not have happened. There is no point in blaming the new owners for wanting to enter into new employment agreements that are in line with their existing contracts? Put the shoe on the other foot, if you bought the business, I am sure you would not be bending over because the union and a few labour supporters said so? Why can't people understand, they saved 900 jobs! You just whinge about employment terms, yet don't think twice when you buy electronics that have been produced on labour of $2USD per 12hr day? They should be thankful they still have jobs. There are plenty of unemployed people that would be happy to take their jobs!
Az#84 what a load of hogwash. Unions are useless and have been for many years taking fees from those stupid enough to beleive they will actually benefit. You are better to go in and fight for yourselves. I was a union member for many years and got absolutely nothing out of it except being sold out on a redunduncy clause in my contract for compensation of a few measly dollars a month. They are happy to take your money but in reality have little or no power nowadays. Also stop going on about rich cats and the National Government. The majority of these people are hard working who already pay more tax to prop up the beneficiary bludgers still creaming it under labours welfare state. I know I'll tell my 3 kids to become beneficiary bludgers as well and not to aspire to anything or have ambition. Then they can drain the country even more.
@ Matt #29 "Now they've got job security.."
That's the issue. Signing the contract wouldn't give them job security.
Meh stop ya moaning everyone, if they don't want to work there they can easily leave. No one is forcing them to stay.
And to everyone moaning about the rich having too much money etc etc - they created these jobs. They deserve the reward of having the money as a result of their good choices in life.
#32 "Unions are evil" Yeah ncie one. I don't know what job you're in pal, but I guarantee in the past that the basic conditions & pay rates you have were fought for & won by unions. That attitude is why this country is in the mess it is in. Work for nothing with little or no conditions. People talk about Australia being the palce to work. Why is that? because the unions are still strong over there & keep the pay rates & conditions at good levels. Wake your ideas up & relalise that these guys ae being shafted & without union representation they'd probably have all been out the door before the new owners took oevr!
Good to know what other businesses these mean bastards own. Now I know where not to shop. Picking on the lowest paid workers in society is just mean spirited.
For what, so they have a few extra shekles in their shrewish pockets for that 100,000 dollar bubbly to pour into their greedy, fattened gullets!
Go unions! Remember, the rich DON'T pay taxes and contribute nothing to the betterment of society ... only to fill their fat pockets!
Port strike to last three weeks
Market midday: NZ shares rise higher at noon
Skellerup posts record half-year profit
Fairfax profit falls 41 per cent
New hope for kiwifruit growers
Port's shares rise on news of record profit
APN posts A$45m interim net loss
EU expects eurozone to suffer mild recession
Treaty obligations to stay in SOE sales law
Carterton tragedy: Safety chief would refuse balloon ride
Major courts overhaul proposed
Foreign Affairs Ministry confirms 305 jobs to go
Mob cancels star's performance
Kiwis not up with online security
Helena Bonham Carter 'honoured'
New hope for kiwifruit growers
Gender non-conformity linked to abuse
Nelsen cleared to lead NZ against Jamaica
Robinson starts for Chiefs against old team
Man's childhood comic collection fetches $4.2m
Newest First
Oldest First
Do your research before you comment.
Redundancy compensation is not a mandatory requirement for employment contracts. It is the exception rather than the norm, since they are very expensive for the company. Have a look at the Department of Labour's website. http://www.dol.govt.nz/er/ending/redundancy/index.asp All you people saying "do not sign" - do your research before you comment about employees rights.