The shopworkers’ union has urged Marks & Spencer to open talks as long-serving staff have been told new contract terms will be imposed if they do not voluntarily sign up to pay and pension changes that could leave them thousands of pounds out of pocket.
M&S has told staff that a one-off compensation payment would ensure they were not financially affected for the first two years of changes that involve cuts in premium pay for Sundays, bank holidays and antisocial hours for nearly 7,000 people.
More than 2,500 workers will lose more than £1,000 a year. Meanwhile, 11,000 workers will be affected by cuts to pension contributions by M&S. Those who do not sign up could have their contract terminated and be automatically reissued with the new terms, according to consultation documents seen by the Guardian.
David Gill, the national officer for Usdaw, said: “We have been contacted by many of our members in Marks & Spencer who are very concerned about the proposed big changes to their pay and pension, along with the threat of autumn store closures. Particularly as the company is threatening to sack any staff who do not accept the contractual changes.
“We urge the company to get round the table and engage with us. M&S staff need a voice.”
Gill said it was inadequate for M&S to rely on consulting via its company organised staff association.
Under the M&S pay proposals, 10% of store workers, most of whom were employed before 2002, are losing out because the premiums they enjoy for working outside normal hours are being slashed. Those affected currently receive double pay for Sundays, but that is being cut to the same as they earn during the week, while double time for bank holidays is being cut to time and a half. Some job titles which attract a premium are also being removed.
M&S has said only those who sign up to a new contract with lower rates of premium pay for Sundays, bank holidays, early mornings and late evenings will receive the compensation.
“I still love M&S as a company but I don’t agree with the way they are going about things,” one staff member told the Guardian.
Several workers who have spoken to the Guardian or contacted the MP Siobhain McDonagh say the one-off compensation offered falls short of the pay they will be losing.
One worker said she would lose about £2,000 a year in Sunday pay but had only been offered about £500 in compensation. Another said he would lose more than £2,000 a year, including M&S’s former pension contributions, but had only been offered £800 in compensation.
He told the Guardian: “They are saying they are offering two years of compensation [until April 2019] but the figures don’t tally. This barely covers me to April 2018.”
The majority of the difference between the compensation and expected premium pay in the first two years will be made up in increased basic pay. As part of the proposals being discussed with staff, M&S has increased basic pay by 15% from next April to £8.50 an hour, helping 62,000 staff.
However, affected workers point out that the compensation will not help them beyond 2019. One suggested the pay changes were being used as a way to push out more expensive staff and cull jobs.
M&S said it was sure all workers who lost out on premium pay would be fully compensated and any worker who was unsure about their payout could get a detailed breakdown of how their compensation had been calculated by calling the company’s staff helpline.
A spokesperson for Marks & Spencer said: “We believe our proposed new approach to pay and pensions would reward our people in a fair and consistent way, simplify and modernise our business and help us attract and retain the best talent so we can continue to provide great service for our customers.
“The proposals include one of the highest pay rates and one of the best benefit packages in UK retail. We will now consult with our colleagues and listen carefully to their feedback.”
But workers said changes in pension arrangements, under which M&S is scaling back company payments and asking staff to put in more cash, mean they will also see their retirement income slashed if they do not pay up.
One worker, whose partner also worked at the retailer, said they were worried they would no longer be able to pay their mortgage. “It’s so devastating to go from secure employment to this uncertainty,” she said.
McDonagh, who met M&S managers to discuss the issue on Tuesday, has pressed for staff to be fully compensated. She said: “Two years’ compensation is not good enough. What happens after that? People have still got to pay their mortgage or rent and these people are unlikely to be able to move on.”
