Warehouse move has Ardern fuming

Prime Minister Jacinda Ardern says she’s ‘‘angry’’ at the Warehouse Group for proposing to cut up to 1080 jobs.

Ardern yesterday morning said the Kiwi retailer had traded on an image of being ‘‘for the community’’, yet was proposing to cut jobs as other businesses worked hard to keep staff on.

‘‘I’m angry, if I’m speaking frankly . . . because at the moment, I’m getting hundreds of letters from small business owners, who are giving up everything to try and keep their staff on,’’ Ardern said on Morning Report.

‘‘The Government, of course, and taxpayers are taking a huge hit, because we are prioritising trying to keep many businesses and individuals employed, and up and running as we can. I’d like to see the same attitude applied by some of our larger organisations in New Zealand.’’

The Warehouse Group, which includes Torpedo 7 and Noel Leeming stores, had taken $68 million in wage subsidy payments offered by the Government, a scheme hoped to ensure businesses retain staff through the coronavirus crisis.

‘‘I am angry, because I do think they are a company that has promoted themselves as being in the community and for the community,’’ Ardern said.

‘‘I accept they’ve been undergoing a bit of a restructure, but if that’s the reason they’re doing it, that’s the reason they should give.’’

Ardern would not weigh in on whether the Warehouse’s executive team should continue to take a 20 per cent pay cut, which they had promised to take until the end of this month.

‘‘But it’s fair to say this is an extraordinary time and there are organisations that are taking a large hit but are prioritising their people as much as they can, rather than just a singular focus on the shareholder.’’

National MPs have criticised her stance.

‘‘The reality is, sadly we are hearing of a number of companies that are laying off staff,’’ deputy leader Nikki Kaye said.

‘‘With regard to the Warehouse, we were a wee bit disappointed with the prime minister’s comments because, rather than getting angry, what we need is action.

‘‘We need action around the creation of jobs, we need action around ensuring that those small businesses can survive

In a statement to the New Zealand stock exchange (NZX) on Monday, The Warehouse Group said in the coming months it would look at six store closures, in addition to three already confirmed, across Noel Leeming, The Warehouse and Warehouse Stationery brands.

The proposals would result in about 700 to 950 job losses. It was also restructuring its head office in Northcote, Auckland, which would result in 100 to 130 job losses.

‘‘I am angry, because I do think they are a company that has promoted themselves as being in the community and for the community.’’ Prime Minister Jacinda Ardern