Unite hailed the news that Arcadia, run by controversial retail tycoon, Sir Philip Green, has now agreed to pay full salaries for head office staff facing redundancy as ‘an amazing victory’.
The row erupted when the media highlighted the fact that Arcadia, whose high street brands include Topman, Topshop and Dorothy Perkins, was only going to pay its head office staff 50 per cent of their notice pay.
Unite had threatened to take legal action for illegal deduction of earnings on behalf of more than 40 head office staff.
In July, Arcadia announced that it was cutting 500 jobs from its 2,500 strong head office workforce.
Unite Regional Officer, Debbie McSweeney, said: “We welcome this news that Arcadia has U-turned and has now promised to pay head office staff full pay during their notice period.
“We understand that it is almost without precedent for Arcadia to apologise for such behaviour towards employees – but this situation should have never been allowed to happen in the first place by Sir Philip Green, one of the country’s richest men.
“Unite would like to sincerely thank our members for the solidarity and personal courage they have shown in standing up to Arcadia’s management and playing their part in righting a flagrant pay injustice. It is an amazing victory.
“This puts down a strong marker to other employers who may be thinking of taking advantage of the government’s furlough scheme – Unite is on high alert for such cases and how they may adversely affect our members.
“Unite will want to examine the Arcadia statement in detail before finally deciding to withdraw our legal action.”