Harveys staff set to lose out on thousands Workers’ anger over commission cash owed
LOYAL staff at bust furniture giant Harveys have been told they will not be paid commission owed.
One worker said he will miss out on about £4000 and feels like he has been told to “take his place in the queue” of unsecured creditors.
The move comes after staff agreed to continue working at the firm’s 14 branches and additional warehouse operations in Scotland in a bid to help save the company.
Normally, workers would earn 10 per cent on all sales, with add-ons. Now, commission on sales prior to July 1 will not be paid and new commission rates have been cut by 70 per cent.
The Blue Group, owners of Harveys, fell into administration on June 30 when its parent company organised a “pre-pack” deal to immediately buy back its sister firm, Bensons for Beds.
It meant parent company Alteri instantly bought back the profitable Bensons, saving between 150 and 175 of the chain’s 242 stores, but cut Harveys loose – leaving it in administration.
A total of 240 jobs were axed immediately, with 1300 put at risk.
A worker said: “Colleagues have done their bit since administration, hoping for the best for the company and trying to drive sales so a buyer can be found.
“To be treated like this is a disgrace. That commission was hard-earned and is the main reason many of the staff came to work for Harveys in the first place. We’re effectively being told to take our place in the queue of creditors, as if that money was not earned.
“We’ll end up getting pennies in the pound.”
An email sent by administrators PWC, seen by the Record, told workers that since commission is discretionary and not contractual, workers are not obliged to be paid commission on sales prior to administration.
It awards staff a £375 “bonus” but says in redundancy, workers will not get commission anyway from the UK Government’s Redundancy Payments Service.
As well as the bonus, PWC said staff will get commission of three per cent on sales between July 1 and the end of administration.
One worker said the amount of commission accrued before July 1, and owed to staff at one Scottish branch, could be up to £16,000.
Workers also fear the firm may close by July 31 unless a buyer is found.