Elverys staff left in dark over buyout
Tuesday 4 February 2014REPORTS that management at Elverys Sports are putting in place a ‘pre-pack’ receivership is a worrying development for staff due to the accompanying uncertainty about jobs and terms and conditions of employment.
It follows the company announcement on January 31 that a receiver was being appointed and that the business would be sold to a group of managers.
It later emerged that other parties had expressed an interest in the business, including it is claimed, Mike Ashley, the billionaire owner of Newcastle United Football Club and Lifestyle Sports.
Mandate, which represents workers in Elverys, has insisted that whatever the future is for the company, workers there will be best protected by being members of their union.
“Whoever the new owner of Elverys will be, whether Mike Ashley, Lifestyle Sports or the current management, the priority for the company will be to maximise profits in whatever way they can,” said Mandate Assistant General Secretary Gerry Light.
He warned: “If any new owner puts in millions to buy out the company, they’ll want a significant return on that investment. What we’re saying is that it won’t be the workers who have to shoulder that burden.”
Mr Light pointed out that workers in the retail sector are almost always overlooked in the receivership process.
He said: “Over the past number of years, we’ve seen a number of strategic receiverships take place in the retail sector. They’re often used to drive down costs including rents and even labour costs. There’s no doubt that this is a stressful time for workers, particularly those who have no access to professional representation.”
Mr Light said workers wanted to know the “implications for them” and an end to “uncertainty”.
“They are, after all, one of the key stakeholders in the business and may become the casualty in a corporate game of chess.
“There’s a chance some workers may lose their jobs and have to seek compensation from the State’s insolvency fund. They may also have their conditions of employment challenged by their new owner and if that happens, the best way to protect their livelihoods is by being united as members of Mandate,” he added.
Mandate has set up a special phone line for Elverys workers. If you work at Elverys and are concerned about the current situation, please call 01 8746321 or email info@mandate.ie.
You can also download and print a pdf of this update below.
