Argos corporate news

Unite Trade Union pay negotiations

30 July 2008

We are very disappointed that Unite union members have voted to go ahead with their threatened strike action this week as part of a dispute over pay.

The action, planned for four of our 15 distribution centres, will be staggered at the four distribution centres over a four-day period between 30 July and 5 August. It is business as usual at all our other distribution centres.

Voting to continue with the strike means we are now withdrawing our repackaged offer which had been negotiated by the union's national representatives. However, we continue to remain open to discussion with the union.

Argos prides itself as being a good employer, offering its distribution colleagues upper quartile pay and excellent terms and conditions, including generous holiday allowance, Sharesave schemes, staff shops and more.

We remain confident that the pay offer is a very good one in the current – and likely future – difficult market environment. It compares extremely favourably with other retailers and with pay increases across the rest of the company.

Stores and deliveries were largely unaffected by strike action that took place on 17 July, and we would like to reassure our customers that the effect of the upcoming strike action on our customers’ shopping experience, both in our stores and online, will be minimal. Only four out of our 15 distribution centres are affected and as negotiations with Unite have been ongoing for a number of months, we have had plenty of time to put contingency plans in place.

Argos has had a good relationship with Unite in the past, and our stakeholder agreement with the Union has been held up as a model for others to follow. Throughout the pay negotiations, Argos has made a number of different proposals to the Union to try to find a satisfactory conclusion for all concerned. The Union, on behalf of its members, has rejected all of these proposals.

-ENDS-