The Warehouse using Covid-19 to justify job losses, union claims

The Warehouse has delayed opening its stores for a big announcement. Photo: Paul Taylor / NZH
The Warehouse has delayed opening its stores for a big announcement. Photo: Paul Taylor / NZH
The Warehouse is using Covid-19 to justify operational decisions already under review that stand to leave hundreds of workers without jobs and "thousands more" with significant reductions to their incomes, First Union general secretary Dennis Maga claims.

The Warehouse is holding staff meetings this morning to inform staff about a proposed restructure and new operating model that could result in the loss of about 1000 staff.

A company spokeswoman said yesterday the group's 92 country-wise stores will open at 9am instead of 8am this morning to allow time for a team meeting to discuss a proposal about how stores operate.

But First Union slammed the move.

"They've been reviewing their business for years and the pandemic has accelerated their progress on an 'agile' system that means workers lose out, communities lose jobs, and customers get a worse experience shopping there," Maga said in a statement this morning.

"The restructure includes sweeping reductions of hours across the country that are left to individual store managers to find and cut, as well as hundreds of job losses and the closure of physical stores," he said.

Maga said delegates would continue to engage with Warehouse executives and challenge the business model as it is implemented around the country. He said workers had welcomed the cooperation between the company and the union during the consultation process but warned further challenges lay ahead.

"The Warehouse held an extensive consultation process after sustained pressure from union delegates and then went ahead and did everything they'd already decided after listening well and engaging with workers, who brought ideas to the table and generally felt the discussions were meaningful."

In an NZX announcement on June 8, the country's largest listed retail company said it was moving to an agile business model, which would "likely see a reduction of around 100-130 roles" in its Northcote head office.

It also plans to close six The Warehouse, Noel Leeming and Warehouse Stationery stores. The stores that face closure include: Noel Leeming Henderson Clearance Centre and Tokoroa store, The Warehouse Whangaparaoa, Johnsonville and Dunedin Central stores and the Warehouse Stationery Te Awamutu.

This follows earlier announcements that it will close its The Warehouse store in Birkenhead in July, and Noel Leeming stores in Papanui and The Palms in Christchurch.
The company said the proposals could cost up to 950 jobs.

The group has already started consultation about job cuts in its head office as it powers on with its plans to go Agile from August 31.

Warehouse Group chief executive Nick Grayston said last month Covid-19 had "made it even more clear that Agile is the right model for the group".