Dozens of much loved pubs across Scotland in serious danger of pulling their last pint, warns GMB Union
Almost 50 Stonegate pubs across Scotland could close after the company issued a profit warning.
As GMB predicted earlier this year – and despite private equity owner TDR’s assurances to a parliamentary select committee in January – Stonegate says there is no guarantee it can continue as a going concern, as it struggles to refinance a £2.2bn debt mountain.
Stonegate is one of the largest pub companies in the UK, with more than 4,500 pubs and more than 19,000 workers, including brands like Slug and Lettuce, Yates and Walkabout.
The chain has 45 pubs across Scotland
GMB has written to Lian Byrne MP, chair of the Business and Trade Select Committee, asking him to recall TDR bosses in light of the profit warning.
Nadine Houghton, GMB National Officer, said: “TDR bosses are private equity gamblers- playing fast and loose with people’s jobs and lives.
“When their risky ventures go wrong, they swan off to their next project, leaving workers and communities to pick up the pieces.
“Now, dozens of much loved pubs across Scotland are in serious danger of pulling their last pint.
LOCAL GOVERNMENT WARNS OF JOB LOSSES AND SERVICE CUTS
COSLA has launched its campaign in advance of the Scottish Budget on 15 December – an ‘SOS call’ to Save our Services.
It is a rallying call, telling communities everything they need to know about the impact of the Scottish Government’s forthcoming budget on our council services, and our communities in the coming year.
COSLA says the SOS call reflects the extremely precarious financial situation in which Councils in Scotland find themselves, during a particularly challenging period. This is as a consequence of real-term cuts to the core budgets of Scotland’s 32 Councils over recent years.
The call comes ahead of the Deputy First Minister outlining the Scottish Budget on December 15th but reflects the reality of what the government set out in its spending plans last May.
Speaking yesterday, COSLA’s President Councillor Shona Morrison said: “There are many areas in which Local and Scottish Government work together for our communities and I fully appreciate that money is extremely tight – all Governments are having to cope with rising inflation and fuel costs.
“However, with little room left to manoeuver, the Scottish Government’s spending plans as they stand will see Council services either significantly reduced, cut or stopped altogether.
“70% of Local Government’s budget is spent on staffing, so it is inevitable that current spending plans will lead to job losses. The very serious impact of this scenario is that the critical work council staff do on prevention and early intervention will reduce significantly.”
COSLA’s Vice President Councillor Steven Heddle said: “In May, the ‘flat cash’ plans looked difficult for us. Today, with prices increasing across the board, including energy costs, and inflation sitting at almost 10% and at risk of rising still further, Local Government is now on extremely dangerous ground.
“Make no mistake, what we will now face is Councils struggling to deliver even the basic, essential services that communities rely on. To put this into perspective, the estimated £1bn gap for councils in 23/24 is the equivalent of the entire budget for early learning and childcare across Scotland or 17,500 teachers.
“A funding gap of this magnitude will have an impact on all our communities, with the most vulnerable who rely on these services suffering the worst consequences.”
COSLA’s Resources Spokesperson Councillor Katie Hagmann concluded: “We are at a crisis point like never before – the impact for communities is serious and needs to be reconsidered.
“The financial impacts for other parts of the public sector are also serious. When councils can’t focus spend on prevention, for example on preventing ill-health, services like the NHS will end up spending significantly more money when issues become more serious.
“Directors of Finance across Scotland’s Councils are sufficiently concerned about the financial sustainability of councils that they have written to the Deputy First Minister outlining their concerns.
“This really is an SOS call from Scotland’s Councils –people in communities across Scotland will be pulled into further poverty and uncertainty without adequate funding for the vital services that support them.”
TUC calls for permanent short-time working scheme to protect jobs in times of economic crisis and change
TUC says government must build on the success of furlough – and set up a permanent scheme to deal with big disruptions to jobs in the future, like the transition to net zero, future pandemics and technological change
Periods of industrial change have too often been mismanaged and led to increased inequality – a short-time working scheme would help prevent this, says TUC
Union body warns of job losses amid abrupt end to furlough scheme
The TUC is calling on the government to establish a permanent short-time working scheme as “a post pandemic legacy” to help protect working people through periods of future economic change.
The TUC says the furlough scheme, while far from perfect, is one of the major successes of government policy during the pandemic, protecting millions of jobs and livelihoods.
On the back of the success of the furlough scheme, the union body is urging government to build on furlough – “not throw away its good work” – with a permanent short-time working scheme to make the labour market more resilient in times of change and crisis.
The union body adds that because of the UK transition to net zero and the increased uptake of new technology, this is “hugely relevant”.
Case for a short-time working scheme
In a new report, Beyond furlough: why the UK needs a permanent short-time work scheme, the TUC says the case for a short-time working scheme is clear, citing significant benefits for workers, firms and government. The union body says for workers, a short-time working scheme would:
reduce the risk of workers losing their jobs in times of crisis
protect workers’ incomes – particularly as short-time working schemes are usually more generous than unemployment benefits.
prevent widening inequalities – protecting women, disabled workers and BME workers who tend to lose their jobs first in a recession due to structural discrimination
And for the government, it would:
protect against long-term unemployment, and the subsequent devastating impacts on communities
help stabilise the economy, and encourage a faster economic recovery as workers continue to spend their wages
save money, as the cost of furlough schemes is often below the cost of unemployment benefits, particularly where costs are shared with employers.
For employers, the TUC says that such a scheme would produce significant savings on redundancy, training and hiring costs, as they enable firms to keep skilled workers on their books.
The union body points out that the UK is an anomaly among developed nations in having no permanent short-time working scheme to deal with periods of industrial disruption and weak demand.
In the OECD, 23 countries had short-time working schemes in place before the coronavirus pandemic, including in Germany, Japan and many US states.
Turbulent times ahead
The TUC predicts that the UK economy is likely to face significant risks in the future – be it from climate change and the transition to net zero, new technologies such as AI, new variants or another pandemic. All could cause unpredictable and widespread disruption in the labour market – causing big spikes in unemployment and business failure.
The TUC cites failed attempts to manage industrial change in the past, which “left communities abandoned” and played a major role in the widespread regional inequality we see today.
The union body says that if the government is serious about levelling up, it will put in place a permanent short-time working scheme to prevent inequalities spiralling – adding that a short-time working scheme could play a vital role in achieving a ‘just transition’ to net zero.
Criteria for accessing scheme
The TUC says the scheme should be governed by a tripartite panel bringing together unions, business and government, which should be tasked with designing the criteria for the new scheme.
In designing the scheme, the TUC says the panel should take into account best practice from existing global schemes. The union body has set out the following conditions which it says must be in place for accessing a short-time working scheme:
Workers should continue to receive at least 80 per cent of their wages for any time on the scheme, with a guarantee that no-one will fall below the minimum wage for their normal working hours
Any worker working less than 90 per cent of their normal working hours must be offered funded training.
Firms must set out a plan for fair pay and decent jobs
Firms should put in place an agreement with their workers, either through a recognised union or through consultation mechanisms.
Firms must demonstrate a reduction in demand – which can include restructuring
Firms should commit to paying their corporation tax in the UK, and not pay out dividends while using the scheme.
The scheme should ensure full flexibility in working hours.
There should be time limits on the use of the scheme, with extension possible in limited circumstances.
TUC General Secretary Frances O’Grady said: “Everyone deserves dignity and security at work. The pandemic shows how an unexpected economic shock can wreak havoc on jobs and livelihoods with little warning.
“In a changing and unpredictable world – as we battle climate change and new technologies emerge – a permanent short-time working scheme would help make our labour market more resilient and protect jobs and livelihoods.
“Too often in the past, periods of economic and industrial change have been badly mismanaged – increasing inequalities and leaving working people and whole communities abandoned.
“Setting up a ‘daughter of furlough’ to provide certainty to workers and firms through future industrial change would be a fitting pandemic legacy.
“Furlough has been a lifeline for millions of working people during the pandemic. Now is the time for the government to build on the success of furlough with a short-time working scheme – not throw away its good work.”
Furlough warning
The call for a permanent short-time working scheme comes exactly six weeks before the furlough scheme is set to end – the date at which employers are legally obliged to start consulting on planned redundancies with their staff.
The TUC is warning the abrupt end to the furlough scheme will cause unnecessary job losses and may harm the country’s economic recovery.
Recently, aviation unions have also been raising concerns about the sudden end to the furlough scheme and the loss of jobs in the sector.
On the ending of the furlough scheme, Frances said: “The jobs market is still fragile, with more than a million people still on furlough.
“An abrupt and premature end to the furlough scheme will needlessly cost jobs and harm our economic recovery.
“Instead of pulling the rug out from under the feet of businesses and workers, the chancellor must extend the furlough scheme for as long as is needed to protect jobs and livelihoods.”
Captain Martin Chalk, Acting General Secretary of BALPA said: “The UK aviation sector is the only industry to remain effectively in a lockdown.
“It employs about one million workers directly and ONS statistics show that 57% of remaining employees in air transport companies remain on furlough.
“The scale of jobs at risk of redundancy when the furlough scheme ends is self-evident, yet the footprint of aviation must not be missed – one in four constituencies has over 1,000 people employed directly by aviation companies.
“If the Chancellor chooses not to extend furlough, the effects will be felt by workers, communities and businesses right across the country.”
Diana Holland, Unite Assistant General Secretary, said: “Aviation is crucial to the UK’s economic recovery. It needs furlough support to continue while Covid restrictions apply.
“Airports and aviation support thousands of jobs. Without support all are at high risk.”
– The full report Beyond furlough: why the UK needs a permanent short-time work scheme is here:
Scotland’s pubs and bars face unprecedented challenges with fears up to 12.5k jobs could be lost
The Scottish Licensed Trade Association has released a snapshot survey of the challenges facing Scotland’s pubs and bars, sponsored by KPMG UK. The survey contains key insights into the significant impacts of the COVID crisis on Scotland’s pubs and bars.
The survey which represents over 10% of Scotland’s On-trade premises, highlights that 45% of business owners do not expect a return to any sort of normal trading until a vaccine is found.
The survey also revealed that up to 25% of the 50,000 jobs in the sector could be lost and coupled with the introduction of reduced opening hours for many businesses and a subsequent reduction in working hours for staff, all jobs in the sector are effectively under threat.
Colin Wilkinson, Managing Director of the SLTA, said: “Our snapshot survey covers all types of licensed premises and is an indicator of the key issues facing the wide range of small to large businesses which trade within the wider hospitality sector.
“Our survey is based upon quantitative research from over 600 outlets covering the length and breadth of the country and is supported by major food and drink chains, independent pubs, bars and hotels in Scotland’s hospitality sector.
“The impact of COVID has been more severe for Scotland’s pubs and bars than virtually any other sector, and we now face the stark reality that up to 12,500 jobs could be lost as nearly 90% of premises report that their revenue is down versus last year, with 38% reporting revenue decreases of over 50%.
“Our own survey reinforces a recent survey by the University of Edinburgh on behalf of the tourism industry, which shows the devastating impact on employment in pubs, bars and the wider hospitality sector.
He went on: “Our sector has worked very hard to prepare for reopening and to ensure customers enjoy a safe environment. The average pub or bar spent £2,500 on training and social distancing measures, and this equates to a £15m investment across the entire sector.
“Also, many pubs and bars have adapted by making increased use of digital technology and offering restaurant quality food and cocktails for home delivery. However, with many people working from home, and local restrictions, one of Scotland’s major employment sectors faces unparalleled difficulties and the current business climate is leading to a real threat of permanent business closures and job losses.’’
The sector welcomed the support from both the UK and Scottish Governments, but notably support from Banks and UK Government had a higher rating than Scottish or Local Government.
Alistair McAlinden, head of hospitality and leisure for KPMG in Scotland, said: “It’s incredibly concerning, but not entirely surprising, to hear that so many licensed trade operators across Scotland are worried about largescale job losses and possible business failures over the next twelve months. The industry is facing a battle for survival and there will inevitably be some casualties.
“KPMG’s Economic Outlook research gives some cause for cautious optimism, forecasting that Scotland’s economy should regain lost ground in 2021, provided a vaccine programme is successful and rolled out quickly. But, for many pubs and bars, the crisis is happening right now and time is running out.
“The sector has worked tirelessly to reopen and rebuild consumer confidence. A collaborative effort and increased support from political leaders will be essential to ensure the industry survives an incredibly challenging few months ahead.
“As part of this, KPMG’s multidisciplinary team are already supporting a number of licensed trade operators as they seek to navigate their way through these financial headwinds.”
Colin Wilkinson concluded: “The SLTA, is currently celebrating our 140thanniversary, and has been the voice of the independent licensed On-trade in Scotland since 1880. Right now, our industry is fighting for its survival with many businesses on the precipice of business failure.
“The sector is a critical part of Scotland’s tourism and food and drink economies and we urge UK, Scottish and Local Governments to provide continuing support for our pubs and bars and protect the jobs that they provide directly, and the associated jobs in the wholesaling, brewing/distilling and food producing sectors.”
Key Findings
63% of businesses are employing less people now than in January (a traditional quiet month), and it is forecast this will increase to 70% less employees by Christmas.
45% of businesses do not expect a return to normal trading until a COVID vaccine is found.
85% of outlets are seeing a downturn in footfall and 89% in revenue.
38% have seen revenue drop by over 50% versus same period last year.
There is evidence that venues in rural and tourist locations are faring slightly better than in urban areas with 77% showing a revenue decline versus 89% nationally.
Retailers have spent significant sums on preparing to meet social distancing standards, with an average investment of £2,500 per outlet, which equates to £15m across Scotland’s pubs and bars.
There are major implications for employment.
Most respondents felt positive about government support provided, but notably support from Banks and UK Government had a higher rating than Scottish or Local Government.
The Eat Out to Help Out scheme was well received amongst those serving food with an enthusiasm to extend.
Retailers have adapted to new ways of working and serving their customers with 43% increasing their use of digital technology and 35% offering food for takeaway.
Marks and Spencer announces 7000 job cuts over next three months:
We are today announcing important proposals to further streamline the business both at stores and management level.
As previously outlined Clothing & Home trading in the stores remains well below last year, with online and home delivery strong. It is clear that there has been a material shift in trade and whilst it is too early to predict with precision where a new post Covid sales mix will settle, we must act now to reflect this change.
We have also learnt that we can work more flexibly and productively with more colleagues multi-tasking and transitioning between Food and Clothing & Home. The deployment of our leading store technology package developed in partnership with Microsoft has also enabled us to reduce layers of management and overheads in the support office.
As a result we are today embarking on a multi-level consultation programme which we anticipate will result in a reduction of c. 7,000 roles over the next 3 months. These will include departures in our central support centre, in regional management, and in our UK stores, reflecting the fact that the change has been felt throughout the business.
We expect a significant proportion will be through voluntary departures and early retirement. In line with our longstanding value of treating our people well, we will now begin an extensive programme of communication with colleagues.
Concurrently we expect to create a number of new jobs as we invest in online fulfilment and the new ambient food warehouse and reshape our store portfolio over the course of the year.
The cost of the programme including redundancies will be reflected in a significant adjusting item to be included in the group’s half-year results. The streamlining programme is an important step in delivering on our cost savings programme and ensuring we emerge from the crisis with a lower cost base and a stronger more resilient business.
Chief Executive Steve Rowe commented: “In May we outlined our plans to learn from the crisis, accelerate our transformation and deliver a stronger, more agile business in a world in which some customer habits were changed forever.
“Three months on and our Never the Same Again programme is progressing; albeit the outlook is uncertain and we remain cautious. As part of our Never The Same Again programme to embed the positive changes in ways of working through the crisis, we are today announcing proposals to further streamline store operations and management structures.
“These proposals are an important step in becoming a leaner, faster business set up to serve changing customer needs and we are committed to supporting colleagues through this time.”
A restructuring process at Edinburgh Airport due to the impact of the Covid-19 pandemic on the aviation industry will see around a third of its workforce leave the business.
Following a lengthy and detailed consultation process with staff and unions, the airport has made the regrettable decision as it prepares for a prolonged recovery.
The airport directly employs 750 people and the redundancy process will begin today, covering all areas including frontline staff, management and support functions. The restructuring includes compulsory and voluntary redundancies across the business.
The airport consulted with staff and unions and its proposals on terms of redundancy were supported by more than 90% of people who took part in the ballot.
Colleagues who will unfortunately be made redundant will begin to receive letters as of 1 August and will leave the business on 31 October
Gordon Dewar, Chief Executive of Edinburgh Airport said: “This is a bitterly sad day for the airport and for those colleagues who are losing their jobs through no fault of their own but due to the impact of this dreadful pandemic.
“We have worked with unions and staff over the past four months to protect as many jobs as possible, but unfortunately we have to confirm this regrettable news as the business prepares for whatever comes next.
“Last year we welcomed a record 14.7 million people through our doors. This year we will be lucky to see a third of that and next year won’t be anywhere near where we have previously estimated so the business has to right size to be in a position to survive and recover when it can.”
The airport has used the UK Government’s Job Retention Scheme over the past few months as it has carefully considered the best approach to its recovery. It has helped to retain jobs, but the upcoming closure of the scheme and uncertain recovery of aviation means jobs will still be lost.
Gordon Dewar added: “The furlough scheme has undoubtedly helped us to retain jobs and we are grateful for the UK Government’s support, as well as that of the Scottish Government through things like rates relief.
“Despite this, we continued to burn around £3.5 million a month as passenger numbers dropped dramatically and airlines drastically scaled back operations. It will be a very long road to recovery, and we cannot successfully make that journey while we are set up as a 15 million passenger airport.
“Aviation was one of the industries to be hit first and unfortunately will be one of the last to fully recover, so job losses have been unavoidable. The situation has been exacerbated by the introduction of an ill-thought out and unworkable blanket quarantine policy which has massively impacted on passenger numbers.
“Aviation jobs rely on passengers and flights. That has been lost in this argument and despite us working with unions to make the case for directed support, we are still waiting to find out what will be done to preserve these jobs which are crucial to any industry and economic recovery.
“Throughout the consultation we have striven to be fair, compassionate and seek an outcome that protects as many people as possible.
“We bitterly regret this necessity and all of our talented colleagues departing the business leave with our very best wishes. They are an incredibly talented workforce who have served Edinburgh Airport fantastically well and we will do what we can to help them find other employment. We are sorry to see them go.”
Lothians MSP Miles Briggs commented: “Edinburgh Airport have had no choice but to make these redundancies, because of the impact of Covid-19 on the aviation industry, and my thoughts are with employees who will be made redundant through no fault of their own.
“These job redundancies reinforce the importance of investing in the South East of Scotland to grow the economy and create more job opportunities.
“Employees who are being made redundant must be fully supported to find new roles and develop new skills for career changes until the aviation industry recovers.”
