The originally Irish group summoned some of its staff at 8 am on Wednesday morning to the 20 retail properties present in the Netherlands. There, employees were told that several positions will be cut. A source within Primark estimates that this affects dozens of employees per branch.
The contracts of, among others, so-called senior department managers, sales floor supervisors, stockroom supervisors and trainee managers will be terminated within a few months if everything goes ahead. Affected employees are free to apply for a newly created position (team manager) within Primark.
Primark thinks 240 functions will disappear, with 200 new ones returning.
The company recently announced that it would cut 400 jobs in Great Britain.
The job timing has been bad for the staff, who had to adapt considerably in the past two years. For example, they had to roll up their sleeves to keep people neatly lined up in long rows in front of the store entrance in corona time. ‘This feels like a knife in the back’, says one employee.
Inflation
Primark employs 70,000 people worldwide in more than 400 stores in 14 countries. Of these, 3200 belong to the 20 Dutch branches. The group, which tries to distinguish itself with low prices, has been bad in the news in the past because of the working conditions of employees in the Asian textile industry who supply Primark.
Primark has been hit hard by the corona crisis because it does not have an e-commerce branch. Nevertheless, parent company Associated British Foods recently announced that it was satisfied with the turnover and prospects of the clothing chain. However, the company warned at the time of the pressure on the company due to the ever-rising inflation. Transport costs, energy costs and labor costs are cited, among other things.
ABF, which relies heavily on Primark, has lost a quarter of its stock market value since the start of the corona crisis and has not recovered.
David Swann Lassche, deputy head of sales in the Netherlands, has signed the letter to staff members who may become redundant. He refers to an external PR agency. That lets you know:
“Primark has presented plans for proposed changes to the management structure within its stores in the Netherlands. The proposals to this end are part of an ongoing program to simplify retail operations.”
Swann Lassche says in the response of the PR agency: “The intended changes that we are proposing will lead to a simplified and more consistent management structure for all our stores in the Netherlands. We are confident that this will help us prepare for future success. It offers more opportunities for career development and more flexibility. This further empowers us to provide the best possible experience for both our customers and our colleagues. We are now focusing on the advisory process with the works council and the negotiations with the trade unions in order to arrive at a new social plan. It is our intention to complete both by 1 May at the latest. After that, we will start the formal process with colleagues whose positions have expired. We will inform them as best as possible about the developments.”