After the warehouse group announced closure of stores and job Prime Minister Jacinda Ardern said the Kiwi retailer had traded on an image of being “for the community”, yet was proposing to cut jobs as other businesses worked hard to keep staff on.
“I’m angry, if I’m speaking frankly … because at the moment, I’m getting hundreds of letters from small business owners, who are giving up everything to try and keep their staff on,” Ardern.
“The Government, of course, and taxpayers are taking a huge hit, because we are prioritising trying to keep many businesses and individuals employed, and up and running as we can. I’d like to see the same attitude applied by some of our larger organisations in New Zealand.”
The Warehouse Group, which includes Torpedo 7 and Noel Leeming stores, had taken $68 million in wage subsidy payments offered by the Government, a scheme hoped to ensure businesses retain staff through the coronavirus crisis.
“I am angry, because I do think they are a company that has promoted themselves as being in the community and for the community,” Ardern said. “I accept they’ve been undergoing a bit of a restructure, but if that’s the reason they’re doing it that’s the reason they should give.” Ardern would not weigh in on whether the Warehouse’s executive team should continue to take a 20 per cent pay cut, which they had promised to take until June.
“It’s not helpful for struggling businesses large or small to have their decisions second guessed by the Prime Minister. The plan as it is at the moment is massive debt-fuelled spending and waiting for a vaccine. What can governments usefully do? I think they can usefully develop a coherent plan but criticising people at the coal face is unhelpful.” The Warehouse Group’s 2019 financial statements show the company’s highest paid person, usually the chief executive, earnt a salary of between $2.26 million and $2.27m.
