Joint statement on Shop Direct

Mayor of Greater Manchester Andy Burnham

Last week’s news of Shop Direct’s planned relocation and anticipated redundancies is a bombshell for hundreds of employees working in Shaw, Little Hulton and Chadderton. We can well imagine how devastated all 1,992 employees must be feeling at this time.

It was essential to bring together all parties affected by the proposed relocation to the East Midlands round the table at the Greater Manchester Combined Authority (GMCA) at the earliest opportunity. As such we met in the Mayor’s offices on Friday, April 13.

Firstly, the Mayor, the trade union, local authorities and local Members of Parliament, had no prior notice of this announcement and conveyed their disappointment to the company of this.

Secondly, we put an offer on the table to explore whether there was any possibility that Shop Direct might reconsider its decision, perhaps relocating to sites elsewhere in the city-region. Oldham Council tabled alternative proposals of a site of a similar size, accompanied by a favourable business package, at Broadway Green, Chadderton. It was disappointing that there was no willingness to engage on these proposals.

Regrettably, it quickly became apparent that Shop Direct have committed to their East Midlands site and their plan of a staged transition starting in two years’ time.

Given that they appeared to have made their decision, the meeting then looked into getting the best possible support for the workforce, and securing a future for the sites affected.

Many of Shop Direct’s staff have worked for the company in one form or another for many years, in some cases several decades and for a number of generations. It is a business with its roots deep in the North West, and we want to reassure employees that this decision is in no way a reflection of the workforce’s capability or dedication. The professionalism and commitment from Shop Direct’s employees has been second to none.

Usdaw will be holding the company to their legal obligations to engage in a meaningful consultation and the union’s test of meaningful is that they fully explore any options of relocating to a nearby site. Moving to the Midlands is not a done deal, the staff through their trade union are entitled to a say in the future of the business.

Usdaw recognises that even if the company decides to relocate within Greater Manchester there are still likely to be job losses due to technological changes, so we welcome the efforts that are being made to support staff whose jobs are at risk.

The Mayor put a proposal to the meeting to establish a taskforce, led by The Growth Company, which was agreed by all parties, including both Shop Direct and the Department for Work and Pensions, and we were grateful for this.

We will continue to do all we can to support the 1,992 people affected by this abrupt decision and to maintain jobs on the sites affected, albeit through new employers.

• Andy Burnham, Mayor of Greater Manchester
• Sue Ianson, Area Organiser, Usdaw
• Wendy Murphy, Area Organiser, Usdaw
• Mike Aylward, Divisional Officer, Usdaw
• Debbie Abrahams MP, Oldham East and Saddleworth
• Barbara Keeley MP, Worsley and Eccles South
• Jim McMahon MP, Oldham West and Royton
• Tony Lloyd MP, Rochdale
• Paul Dennett, Salford City Mayor
• Cllr Jean Stretton, Leader, Oldham Council
• Cllr Allen Brett, Rochdale Borough Council