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Harrods has reportedly threatened to use new laws to break possible strikes by using temporary workers from agencies if industrial action persists, Unite has warned.
First reported by the Daily Mirror, the luxury retailer is said to have sent a letter to staff working in store services, engineering, maintenance and security on 8 August, after 150 staff balloted for strike action over a “pay cut disguised as a rise”.
The letter, seen by the Daily Mirror and reported by Unite, said: “Recent legislative changes relating to the Conduct of Employment Agencies and Employment Business Regulations now allows agencies to provide temporary workers to perform duties normally performed by a worker who is on strike.
“We are therefore no longer restricted from engaging temporary workers should any industrial action take place now or in the future.”
Unite general secretary Sharon Graham added: “It comes as no surprise that Harrods – known for catering to the supremely well-off – could be the first employer Unite has come across to threaten low paid staff with the recent government legislation designed to break strikes.
“Harrod’s attempts to use this new legislation to bully our members doesn’t change a thing. Unite is prepared for all eventualities and our members at Harrods will receive the full backing of the union in their fight for a fair pay rise.”
Unite regional officer Balvinder Bir said: “At every turn, Harrods has tried its best to union bust. From threatening members with the new agency worker laws, to trying to negotiate around the union and Acas by sending individual workers letters. All in order to force through a pay cut disguised as a rise.
“I’m sure the high-end brands that sell through Harrods, such as Gucci, Dolce & Gabbana, Prada, Louis Vuitton, Versace and Stella McCartney, will be embarrassed by Harrods’ tactics. Harrods needs to return with a pay offer our members can accept before this dispute escalates.”
Unite noted that if strike action goes ahead, there will be a picket line outside of Harrods’ main entrance.
On the Unite ballot, a Harrods spokesperson told Retail Sector: “We have had confirmation from Unite of their intention to formally ballot their members for strike action, following a rejection of a proposed pay increase offered back in April. This ballot relates to a very small number of colleagues who are members of Unite; roughly a third of employees who are part of this particular collective bargaining agreement.
“As a business, we undertake rigorous and regular benchmarking to ensure all colleagues are paid competitively. Our base pay rates are very competitive within the industry, and the pay rise we have offered will ensure this remains the case. Unfortunately, we are unable to award these payments to all impacted colleagues until pay negotiations have concluded with Unite.”
They added: “This is why it is extremely disappointing that Unite continues to delay this pay increase being awarded and backdated for the colleagues in this group. This is our number one priority. We continue to urge Unite to work with us to ensure this is swiftly resolved for the benefit of all our hard-working and dedicated colleagues.”
On the use of agency workers, a Harrods spokesperson also said: “We are proud to offer exceptional customer service as part of the Harrods experience. It is vital that we continue to provide the experience that our loyal customers deserve, as well as ensuring the highest levels of safety for our colleagues, and this means ensuring we are properly staffed at all times.
“We already work with agency colleagues within Harrods to ensure that we have consistent and high quality service available to all customers, particularly in busy periods. While we are able to engage temporary workers if industrial action occurs, this is certainly not our preferred course of action. That is why we are urging Unite to work with us to resolve this matter as swiftly as possible.”
