Staff confused as job cuts confirmed
Workers are upset at ‘‘confusion’’ over The Warehouse’s plans to cut jobs.
The major discount retail chain has finalised plans to refine its store leadership structure, affecting jobs at 92 stores.
Chief executive Pejman Okhovat said it was the first change of its kind in 15 years.
‘‘Retail and customer behaviour is changing like never before, so we need to evolve from a traditional, hierarchal structure to one that is fit for the future and the ever-shifting needs of Kiwis,’’ he said.
‘‘The new leadership structure will deliver a number of benefits to team members and therefore customers, including increased staffing levels at peak times, better leadership support during trading hours, improved sick and holiday cover and better-defined career pathways for team members.’’
As a result of the new store leadership structure, it is anticipated there will be between 120 and 140 fewer full-time equivalent roles across company’s stores.
Okhovat said efforts were being made to redeploy as many team members as possible into vacant roles. All workers will now be required to work weekend and evening shifts.
But First Union, which represents some Warehouse staff, said there was widespread confusion. It had been told the timeline workers had to apply for jobs was from yesterday until August 1, with jobs confirmed by August 10.
Organiser Kate Davis said yesterday that the union had urgently requested a meeting to get clarity.
‘‘Some staff believe they will not receive redundancy if they do not apply for any of the new roles, and these new roles do not suit many workers who need a decent number of secure hours.’’
Members were worried that if they didn’t have a 20-hour contract it would affect their Working for Families benefit.
Davis said it was a move to casualise the workforce. She said the type of restructure was one that utilised the law against workers, making them partially redundant but without a redundancy package.
‘‘Our rule of thumb is that if a permanent worker’s hours are cut then that is a partial redundancy. The problem is the company is forcing workers to apply for a job with a cut in hours and will then say there is no partial redundancy because the worker applied for the new job.
‘‘Workers thought redeployment was the favoured option at the last meeting. Now they are being told redundancy is a key option, with one manager stating: ‘Considerable redundancies will be inevitable.’ ’’
The company’s move follows a three-week consultation process.
Where recent vacancies have arisen in stores in recent weeks, The Warehouse has attempted to hold the permanent role open as a potential redeployment opportunity, and used temporary and casual employees in the interim.
The retailer will not contribute to moving costs if people take a job in another region.