REGULATORY RETAIL
and in line with the Real Living Wage for the majority of the country. “We’ve committed to raising salaries for all our Partners to at least the Real Living Wage when we make an annual profit of more than £200m.” But for Rand, commitment to profits is not enough and the future of high streets depends on staff being paid a meaningful wage.
“The only sustainable future for the high street is to ensure that companies can properly recruit and retain staff, and the truth is that the only way they’re going to be able to do that is if we see retail jobs properly reflected in their level of pay,” says Rand. “Our view is that everyone should be paid £10 an hour.”
The Body Shop, a company synonymous with ethical practices and acclaimed for its activism in the beauty sector, was also found to have underpaid 959 staff members around £34,000. However, the group denounced any wrongdoing, claiming that it had reimbursed staff that were short-changed due to uniform costs. Speaking to Cosmetics Business, a
representative from HMRC and the Department for Business, Energy and Industrial Strategy says: “All businesses, irrespective of size or business sector, are responsible for paying the correct minimum wage to their staff. We won’t hesitate to act to ensure that workers receive what they are legally entitled to.
“There is no excuse for underpaying your staff.
We ask all employers to check the guidance on
gov.uk.
“HMRC reviews every complaint made about the minimum wage, so if you think you are being short-changed, or are a business that is unsure of the rules or needs help to get things right, get in touch and we will help you.” Similarly, eight beauty and salon owners were named on the list for failing to pay 19 members of staff more than £23,000, an average of around £1,231 missed out on by each employee. When asked about the findings, Caroline Hirons’ Beauty Backed Trust, an organisation founded by the skin care mogul during the height of the pandemic to help financially support beauty workers and owners, highly denounced the acts of these employers. “Beauty Backed Trust wholeheartedly believes that hairdressing and beauty employers have a responsibility to pay their staff at least the minimum wage,” the trust tells Cosmetics Business.
“Retailers and salons that do not comply with these laws should be held responsible and employees must feel empowered to challenge their employers if they are not being paid in line with government guidelines.”
FIRE & REHIRE
One of the greatest issues facing retail workers, other than low pay and abuse from consumers, is the issue of ‘fire and rehire’. This is when a worker is let go from a business, before being rehired
48 December 2021
John Lewis was named and shamed by the UK government for breaking national minimum wage law, although the retailer claims this was down to a technical breach that happened four years ago
under – more often – less attractive contracts. While not an illegal practice, it’s a highly unethical one.
In an effort to reform unemployment law and discourage businesses from firing and rehiring their staff on lower pay or lesser desirable contracts, a UK Labour Party backbencher, Barry Gardiner, introduced the Employment and Trade Union Rights (Dismissal and Re-engagement) Bill in June this year.
But the bill was blocked by MPs, who insisted that new guidance should be given to businesses, rather than making it a law.
According to a statement released by No 10, a spokesperson for Boris Johnson said: “Using threats of firing and rehiring is completely unacceptable as a negotiating tactic. We expect companies to treat their employees fairly.” He added that there was insufficient evidence to show that the legislation would prevent companies from firing and rehiring, and that it would not be effective.
Some businesses, however, have not been deterred.
BCM Fareva, a subcontractor that develops cosmetics and other household items for major brands, including one of beauty’s largest UK retailers, Boots, recently came under scrutiny for firing all of its staff members and rehiring them on lesser terms. USDAW condemned the decision to fire and rehire its staff, following “brutal cuts” to their terms and conditions contract. “In a relatively short space of time, [BCM’s] employees will have seen their sick pay slashed. I think it was significantly worse than half – they’ve seen their pension contributions go massively down, as well as their basic terms and conditions, including redundancy,” adds Rand.
A strike took place during the dispute, but BCM refused to change its stance on the matter, and went ahead with its decision to rehire staff on significantly reduced contracts. BCM did not respond to Cosmetics Business’ request for comment.
Rand says the reason businesses choose to do this is twofold. “The company will point to business reasons. But, equally, it happens because, unlike in a lot of other countries, it’s legal and they can,” he adds.
“So, as always, if something’s possible and they can save money, then of course they will.” Many beauty shop floor workers are a gateway into a brand’s universe and their ethos, and they can have a significant impact on the reputation built up by a brand. As Rand explains, the role that retail workers play in wider businesses should be properly rewarded to see success.
“Everyone now can see the importance of the roles retail staff play more than before. I think the challenge will be making sure that employers, the government and the public don’t forget some of those lessons, particularly in the rush to return to normal”
cosmeticsbusiness.com
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68
