Workers in the Shaws department stores in Castlebar and Ballina, as well as in 14 other Shaws stores nationwide, are to be balloted for industrial action by their union Mandate. The retail outlet has 16 stores throughout the country, including the two in Mayo, employing more than 1,000 staff.
Mandate claim that the retailer is still profitable and it appears that the company is using the recession as a means to reduce the living standards of its workers in the pursuit of unattainable levels of profit.
However, Shaws have said that the company have been working to remove costs from the business at all levels for many months now. The company said that a decline in the economy and in consumer spending in particular has been impacting on their business since autumn 2007. Last year the company recorded a fall in like-for-like sales. They said margins also reduced.
Mandate Assistant General Secretary, Gerry Light said: “Shaws have refused to pay the national wage agreement despite still being a profitable company. The company are also planning significant reductions in hours for staff members, essentially meaning a wage cut for their workers.”
Shaws have admitted that measures to reduce costs include a management redundancy programme and a salary freeze for all remaining company management. And a spokesperson said they wrote to Mandate in mid-March advising that, pending the outcome of talks at national level involving the social partners, it would be seeking a lengthy deferral of the pay terms of Towards 2016 agreement.
“Notwithstanding the above measures, the company must make further adjustments so that it can meet its commitments, including payroll, and to maintain safe and secure trading and employment. Some of these changes will involve job losses for some and other measures affecting others who remain in employment. However difficult these changes, the company must face up to them to protect the business and preserve employment to the greatest extent possible,” a Shaws statement outlined.
“On March 23, the company met with the Mandate trade union and outlined a number of cost saving measures. The first of these – a modest change in store trading hours affecting five branches and an overtime ban affecting four people company-wide – were implemented from March 30. With regard to the most significant elements of its cost saving programme – including redundancies affecting up to 40 staff – the company gave a commitment, in writing, not to proceed with any such changes pending the holding of a conciliation conference under the auspices of the Labour Relations Commission (LRC ). This remains the company’s position,” the statement continued.
The Mandate General Secretary said the trade union has agreed to attend the conciliation services of the Labour Relations Commission on the basis that there are no pre-conditions to the meetings and that the measures unilaterally introduced thus far are withdrawn. “Although requested, senior management at the company have refused to comply with this standard and well established procedural request,” Mr Light added.
Shaws have said that despite a commitment not to proceed with redundancies pending conciliation, Mandate are balloting for industrial action over two “relatively modest changes” that have been implemented, namely, revised store trading hours (affecting five branches ) and an overtime ban (affecting four people company-wide ).
They said they remain willing to discuss all matters in dispute at the LRC and have strongly urged Mandate to take up this opportunity.
