Following the announcement of a ninety day consultation on the possible closure of the Newtown branch of Shop Direct, which currently employs around 180 people, Montgomeryshire Liberal Democrats Lembit Öpik and Mick Bates have secured a meeting with top management to seek solutions, short of closure.
However, the announcement of these job cuts is to do with increasing on-line shopping and not the recession. Shop Direct Group says it has excess capacity due to falling call volumes. Numbers have declined from 33 million calls to 19 million in under four years. The potential Newtown job losses are part of a 1500 job cut in the company as a whole.
Lembit Öpik MP said: “Just when it looked like we might be creating more jobs in the area, this blow hits Newtown. In effect, these redundancies could axe 1 in 20 jobs in the town and unless we can do something about it will cause great distress and hardship. That’s why I have been in negotiations with the firm’s Chief Executive, Mark Newton-Jones, to see whether the closure can be staved off.
“I can now confirm that on Thursday, 4th February, we are meeting with the top management of the company at their Head Quarters in Speke, together with representatives from the Newtown workforce and the Welsh Assembly. Our aim is to hold a full and frank discussion about whether a rescue package can be sorted out and other aspects of the situation. They’re creating 350 new roles in their firm and we need to understand whether these have potential. I’ve also been in discussions with the office of Peter Mandelson, Secretary of State for Business, Innovation and Skills. We have agreed that I shall contact him after our meeting on Thursday.”
Assembly Member Mick Bates adds: “This announcement is a sad sign of the times of changing shopping habits with more and more people conducting their business online.
“A 90-day consultation period will now begin with the individuals affected by these proposals and with their union representatives. It means we have a bit of time to get clarity on what’s really set to happen and it’s important everyone makes their views known. This is a dreadful period of uncertainty to the staff and they need to know as soon as possible whether there is any way their jobs can be saved, or what the alternatives are.
“The last thing we need is a potential closure which would add around 5% to the unemployment statistics of Newtown. I’m working with Lembit to find a way – any way – to resolve the situation and that includes seeking funding for a financial support plan for this location from the Welsh Assembly or support for any retraining that staff may need. We’ll keep you posted on progress, whether the news is good or bad.”
