Tesco House, Cardiff: Job Losses

Ruth George Excerpts

Wednesday 19th July 2017 Commons Chamber

[Anna McMorrin]

I thank the hon. Gentleman for his support.

In his desire to achieve more savings, Mr Lewis needs to understand that he has an absolute responsibility to treat his employees fairly and with respect. He owes them a duty of care and he should listen to what his staff are saying.

In the days following the announcement, I went to the customer centre to meet the staff affected, along with my hon. Friend the Member for Cardiff Central (Jo Stevens) and my local Assembly Member, Julie Morgan. The staff are utterly devastated and feel let down by a company to which some have dedicated their working lives. One staff member told me:

“We had felt like we were part of one big family and took pride in coming to work. This feels like being dumped like an old pair of shoes after being promised a secure future. Now we are feeling exploited and used.”

Some of the worst-affected households are those with multiple members losing their jobs. Some families will lose two, three or even four wages from their budgets. One couple in their late 20s who had their first child less than a year ago are both set to lose their jobs.

[Ruth George (High Peak) (Lab)]

Following the coalition Government’s halving of the statutory consultation period from 90 days to just 45 days, the employees whose whole lives will be devastated by these redundancies have just 45 days to find another job in a small area where there will be more than 1,000 redundancies. Does my hon. Friend agree that 45 days is far too short a period for employees to find alternative jobs and for companies to look at straightforward alternative business proposals to fulfil their duty to consult properly with staff and look at real alternatives to keep those jobs in place?

[Anna McMorrin]

I absolutely agree with my hon. Friend about that, which is precisely why I brought this debate to the House.

One worker told me:

“We are absolutely devastated as my fiancée is currently on maternity leave with the birth of our baby daughter. We have also planned to get married next year so this news has come at the worst possible time for us in our lives and we are very worried for the future.”

Another staff member contacted me on Facebook. He said:

“It’s been stressful for a lot of us, some more than others. I’ve been made aware that there are options to apply for a store role or to move to the Tesco site up Dundee. This is not an option as it’d be too much of a drastic life change and there are very few roles considering the number of employees in our centre. The announcement has also left me wondering, if I moved to another role in the business, would I be any less vulnerable to another redundancy announcement in future.”

He went on:

“A lot of my colleagues whose time at Tesco exceed 10 years are choosing to stay until the end for their redundancy package as they’ll get a significantly larger amount but for many employees like myself who have been with Tesco just a little over a year, we see no incentive in staying as I don’t feel valued as an employee anymore and barely feel like I’m part of the place now.

The morale has dropped rapidly on my work floor whereas it felt like a small community only a year back, and now it feels very empty and makes me feel quite down whenever I’m in the environment. I used to love coming to work but now the hours feel longer and it just feels like it’s getting in the way of the hours I could be using to find progression in life.”

Those are just a few of the many messages I have had from distraught members of staff who have been affected.

What is going to happen now? The Welsh Government’s Cabinet Secretary for Economy and Infrastructure, Ken Skates, has announced the formation of a taskforce to find new employment opportunities for the staff. That is a welcome development. It will pool the knowledge and resources of key partners to ensure that the 1,100 people currently working at the centre are provided with the very best support in seeking further employment, as well as welfare and emotional support. Following my question to the Leader of the House on 22 June, I ask the Minister before us to urge the Department for Work and Pensions to work with the Welsh Government and dispatch its emergency taskforce to help ensure that the staff who are affected are fully supported.

While that work goes on, along with the Union of Shop, Distributive and Allied Workers, I will be making the case for Tesco to rethink its plans and for better engagement with its workforce. If there is to be any outsourcing of jobs, at the very least I would like an assurance from Tesco and the management that they will go to companies based in south Wales.

--- Later in debate ---

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Margot James)]

I welcome the hon. Member for Cardiff North (Anna McMorrin) to her place and congratulate her on initiating this important debate.

These are worrying times for Tesco staff at the Cardiff customer engagement centre and their families—especially those families with more than one person employed there—and I am sure that all our thoughts are with them. As the hon. Lady said, at 1 o’clock on 21 June, before it was officially announced at 2 o’clock, Tesco notified its staff of its intended plans to simplify its customer services operation by expanding its office in Dundee and—sadly—closing the centre in Cardiff by February 2018. I know that the hon. Lady tweeted, shortly after Tesco told its staff, about how shocked she was to learn of the proposed closure, and raised the issue with my right hon. Friend the Leader of the House during business questions.

A 45-day consultation with the unions has begun. The Government’s focus is to support all those affected and to get people back into work as quickly as possible through Jobcentre Plus. I can assure the hon. Lady that we are working with the Department for Work and Pensions to ensure that the maximum service is available.

[Ruth George]

I wish to make the same point to the Minister that I made to my hon. Friend. The period of statutory consultation, even for such enormous job losses, has been halved from 90 days to 45 days. Whatever support the DWP and Jobcentre Plus can put in is very welcome, but 45 days is far too short a period for so many jobs to be found in a city such as Cardiff. Although Cardiff has good employment levels, 1,200 good jobs cannot be replaced in such a short time. Will the Minister look at reviewing that halving to assist companies in supporting their employees?

[Margot James]

I thank the hon. Lady for her intervention and I did note her earlier remarks. I do not think there is any prospect of reversing that decision. I accept that it can prove difficult for people to find alternative employment within the 45 days, but a lot of support is going on in Cardiff, not just from the DWP and the Government but from the Welsh Assembly. It is a buoyant economy and I hope that people will find satisfactory employment within that timeframe.

It is not always easy to find another job, and even if people do so it does not alter the hurt they feel at the rejection that redundancy always involves. But business change is an inevitable consequence of competitive markets, and retail is a highly competitive market at the moment. Commercial and economic opportunities and threats mean that companies will need to reorganise, merge, expand and, sometimes, unfortunately contract in response. To ensure businesses remain viable and profitable, they need the flexibility to respond to the circumstances they are facing as best they can. At the same time, employees will want to know how the changes are likely to affect them, and what their options are for the future. It is vital, therefore, that there is effective consultation with employees about the potential for collective redundancies.