Somerset Independents On Somerset Businesses: Just What Is Going On At Clark's?

 

Somerset Independents wants Somerset residents to be proud of what Somerset businesses produce, and for Somerset's reputation to be enhanced outside Somerset and across the world.

We will happily praise Somerset-based businesses that Somerset people can be proud of. But we will challenge businesses that we believe may be tarnishing the reputation of Somerset.

Clark's shoes was founded in Street, Somerset, by the Quakers C & J Clark. The Registered Office is still in Street. The Alfred Gillett Trust is a Somerset-based charity in Street which "preserves the heritage collections of C & J Clark Ltd., the family which founded the global shoemaking company".

It has been a large employer of Somerset workers for almost 200 years. It is a well-known and respected brand for shoes.

We were therefore concerned to hear of the ongoing industrial dispute at Clark's, which has now led to strike action.

So we have contacted workers representatives at the Mendip Trades Union Council (TUC), to try to find out the truth behind the strikes.

Somerset Independents officers Andrew Pope and Denise Wyatt wrote to the Mendip TUC, saying:

"This dispute is tarnishing the reputation of Clarks, who were founded by Quakers. And it is harming the relationship between employer and employees. This will impact on the sustainability of the business, harming Somerset's workers.

We believe that the founders would be extremely upset at the current situation and that they would never have allowed this.

What changes have occurred since the Lion Rock takeover and how are the "key" shareholders acting since the takeover to protect the company's reputation?

What changes have occurred in employment relations?

Now that workers have been forced to strike, do you believe that the new owners will bring retribution on any workers?

Finally, how can Somerset Independents assist in helping to resolving the situation?"

 

Mendip TUC told us:

"Clarks warehouse workers, members of the Community Union, face the following threats:

1. An average reduction in pay of £1.66 per hour: from the current £11.16p to £9.50p;

2. An increase in working hours of 2.5 per week, due to paid 30-minute meal breaks being abolished;

3. No pay rise for at least four years, despite the union agreeing to help the company through a 'difficult financial spell' by accepting two hours less per week INSTEAD of a pay rise on two different occasions and at the company’s proposal.

4. Drastic cuts in sick pay: from 13 weeks full pay to 6 weeks full pay and 6 weeks half pay; abolition of sick pay for the first day of absence; no sick pay entitlement from day one of employment, only after 6 months;

5. The abolition of a daily ten-minute coffee break, brought in at the company's request to ease warehouse operations;

6. A drastic reduction in redundancy entitlements: from enhanced double statutory, to statutory, (ie, one week’s wages per year of service), raising fears that the company will get rid of workers, even close the Street Distribution Centre, just as they are closing their distribution centre in Kendal.  

7. Cuts to overtime rates to time thus giving no chance to increase pay"

8. No direct cuts to maternity pay or pension entitlements, BUT with a 15-20% cut in wages, pensions will suffer a drastic fall when taken out."

Dave Chapple, Secretary of Mendip TUC, said:

"I have personally, met four Clarks workers who fear losing their homes (Inability to pay rent, mortgage) and even lose contact with their children (If only able to afford a bedsit, unsuitable accommodation for children).

Is this the Clarks Quaker Family firm that was an iconic part of manufacturing, 'factory' Britain for 200 years?

Is this, even the Clarks family firm that, even when it closed all of its Somerset factories over a 15-year period, nonetheless treated its remaining Street HQ and warehouse workers, and their trades unions, with respect?

NO! Welcome to the "Brave New World" of Clarks' new owners Lion Rock Capital.

Hong Kong based, venture capitalist, hedge fund capitalist, slash and burn capitalist, just pick your most accurate label!

Is this really the future for work in this country: no more decent trades union recognition or collective bargaining negotiations, just industrial dictatorship, "take it or leave it" "Fire and rehire?” "

Leader of Somerset Independents, Andrew Pope, says:

Andrew Pope

"Just what is going on at Clark's? What do the new owners think they are doing? Do they even know about the traditions of Clark's, or even care?

Many years ago, when I was doing my training to be a union representative and negotiator, I was stunned to hear that under a Labour Government (Blair/Brown), that Fire and Rehire was commonly done. Worse, it was allowed under UK law. In 13 years of Government, Labour failed to end Fire and Rehire.

Loosely, what Fire and Rehire means is that employers are able to dismiss employees on existing contracts, and force them to accept new terms and conditions in a new contract. If the employee does not sign the new contract, then they are deemed to no longer have a job.

Indeed, this is what happened in the large negotiation in the AXA Group of insurance companies, in which I represented thousands of employees in the harmonisation of terms of conditions, after AXA had taken over other companies. 

I pushed back when the directors of AXA said that the harmonisation would be done via the termination of existing contracts, but other union representatives and the union official explained to me that this was the way it was going to be done.

So I fought very hard to ensure that if this was going to be done, that there would be an absolute minimum of employees losing out.

This situation at Clark's is therefore horrendous to hear about. It is almost as if the new owners of Clark's, Lion Rock, want to force employees out and this Fire and Rehire is their tool of choice for achieving this, by cutting pay and conditions unilaterally, without the agreement of employees."

Somerset Independents is considering its next steps in relation to this dispute.