Currys boss hits out at Labour jobs shake-up
Alex Baldock warns reforms could make businesses ‘hesitant’ to hire rather than protect workers’ rights
THE boss of Currys has slammed Labour’s sweeping plans to shake up the jobs market and warned that they could put companies off hiring staff.
Alex Baldock, who has led the electricals retailer since 2018, said firms should not be subjected to more red tape and government ‘diktats’ from any political party.
Labour has proposed a series of reforms that include ditching zerohours contracts and controversial ‘firing and rehiring’ practices.
Rachel Reeves, the Shadow Chancellor, last week made the case for the plans, dubbed a ‘New Deal for Working People’, in the prestigious Mais lecture.
Reeves said she is keen to give workers the security to change jobs and stop exploitation.
But in a worrying move for many employers, Labour also proposed effectively scrapping the ability for businesses to put workers through probationary periods.
These restrict certain rights for a set time until an employee receives a permanent contract. They also make it easier to let staff go who do not suit the role.
Under the plans, firms would have to provide employees full rights, including sick pay and parental leave, from the first day.
While he stopped short of attacking Labour by name, Baldock said the policies the party put forward would make firms more ‘hesitant’ to take new people on. He said: ‘If you get rid of a very valuable probationary period for every colleague, that’s going to make businesses more hesitant to hire in the first place.
‘Many things are better sorted out between individual businesses and individual people, rather than by government diktat.
‘And government, of whatever persuasion, needs to be careful that in seeking to protect people it doesn’t inadvertently make the process harder.’
Business lobbying group the CBI, led by City veteran Rupert Soames, is pushing Labour to soften its worker rights pledges.
Soames said the UK should avoid a ‘European model’ of employment rights and excessive regulation.
A Labour spokesman said: ‘As a pro-worker and pro-business party, Labour will work in partnership to ensure the implementation of our reforms work for the economy and bring security.’
Currys employs around 15,000 staff in the UK and has 300 stores. The company, previously known as Dixons Carphone, traces its history back to 1884 when Henry Curry set up a bicycle-building business. Baldock’s intervention follows his rejection of two takeover offers for Currys from US investment group Elliott Advisors. In February Elliott, which also owns the book chain Waterstones, proposed buying Currys for £700 million. A second offer of £742 million was also quickly rebuffed. Another potential bidder, Chinese retailer JD.com, pulled out of the race last week before tabling a firm bid. Baldock told The Mail on Sunday he had no plans to change the company’s strategy, despite struggling with high inflation hitting demand in all its markets over the last couple of years.
In July it cancelled its dividend and slashed spending in its Scandinavian division. Baldock said the company was ‘flattered’ that Elliott was interested and saw value in Currys.