GMB W47 Branch

Wilko Bulletin - Update On Legal Claims - 12-03-24

Dear GMB members,

I am writing to update you on the current status of the various legal claims GMB is taking and supporting with regards to Wilko’s failure to comply with collective consultation legislation in several establishments during the collapse of Wilko last Summer.

I am pleased to confirm that ALL claims have been lodged. These claims are:

GMB v. Wilko Limited.
GMB v. Wilkinson Hardward Stores Limited.
Julian Ayres, Paul Berridge, Robert Donachie, Mark Halls and Debra Willson v. Wilko Limited
Shipley and Berridge v. Wilkinson Hardware Stores Limited.
All individual claimants (i.e. those individuals named above) have been contacted separately by the GMB's lawyers, Pattinson and Brewer. These are the Band 2 elected reps, bringing claims on behalf of all the Band 2 colleagues who were part of their collective consultation group. The Band 2 reps are the only individuals who can bring the Band 2 claims and only Band 2 colleagues who were part of their consultation groups will be eligible for any potential protective award payment awarded by the tribunal. For clarity, we are aware other Band 2 elected reps have lodged claims separately but are unable to provide further details.

The claims being brought by the GMB are being brought on behalf of all Band 1 colleagues, therefore Band 1 colleagues will not likely receive individual communications until any potential protective award judgement has been given by the tribunal.

We do not yet have dates for the hearings but as soon as we do we will write to update.

In solidarity

Nadine Houghton

GMB National Officer

Working in the Retail Sector - Webinar

Tuesday 17th October - 7:00pm
https://www.unionlearn.org.uk/event/2023/working-retail-sector

Join Matt Pointon from the TUC-WMCA Skills Partnership as he chats to Ray Le Tarouilly from the National Careers Service and GMB Union.

This webinar, brought to you by the TUC-WMCA Skills Partnership, the GMB and National Careers Service, is aimed at union members seeking work in the retail sector, particularly those who are facing redundancy in today's challenging job market. Ray from the National Careers Service, will use his expertise in job-seeking to speak about employment opportunities and how to access them, whilst the Centre for Ageing Better will also contribute with ideas and support for workers aged 50 and over. A GMB officer will also be at hand to answer any queries that members might have.

Working in the Retail Sector | Unionlearn Register Date and time 17 October 2023 19:00–20:30 Join Matt Pointon from the TUC-WMCA Skills Partnership as he chats to Ray Le Tarouilly from the National Careers Service and GMB Union. This webinar, brought to you by the TUC-WMCA Skills Partnership, the GMB and National Careers Service, is aimed...

Latest Wilko bulletin - 25th September 2023

WILKO PENSIONS UPDATE

Dear Member,

We have received several questions relating to Wilko pensions over the past few days, particularly in relation to July and August’s payments not yet hitting your accounts for the Peoples Pension and Scottish Widows, please find some useful answers below:

Question: I have noticed pension deductions from before the administration have not been credited to my account?

Answer: PwC’s specialist pension team are reviewing the company policies. Contributions owed to the pension scheme may be claimed from the Redundancy Payments Service. You do not need to do anything to recover these amounts, but there may be a short delay in the funds being credited to your account.

Question: What happens to pension deductions since we have been in administration?

Answer: As long as you continue to be paid and contributions are taken from your wages and salary by PwC, these will be paid to the relevant pension provider. There may be a slight delay in the contributions being paid over to the provider and the contributions being allocated to your own individual account as a result of there being different protocols when a company is in administration but PwC have confirmed all deductions will be paid over.

Question: What about the Defined Benefit Scheme?

Answer: As previously advised it is looking like there is a deficit in this scheme if you are a member, you should have received a letter dated 15th August from Dalriada Trustees Limited outlining some changes to the Trustees and the appointment of Spence & Partners as administrators. They also confirmed the scheme had entered the pension protection fund assessment period

Question: What action is the GMB calling for in relation to the Defined Benefit Scheme?

Answer: The GMB have publicly called for Lisa Wilkinson or Amalgamated Holdings Wilkinson Limited as the previous parent company to fund any scheme deficit. We are also calling on The Pensions Regulator to investigate the situation and if found to be appropriate make a Contribution Notice to force this to happen if they will not do so voluntarily. Members should not face a reduced retirement income whilst the shareholders withdrew millions in dividends.

Question: How do I contact my Pension Scheme?

Answer: The pension schemes can be contacted via the following numbers:

Peoples Pension: 0300 2000 444

Scottish Widows: 03457 556 557

Wilkinson Group Retirement Benefit Scheme (Defined Benefit Scheme):

Phone: 028 95210128 Email: [email protected]

Your GMB National Team

See the below letter from GMB regarding wilko.

Date: 25/08/2023

WILKO UPDATE BULLETIN

Dear Colleague,

Pay

We have been informed by a number of members that they have not yet received their pay which was due today. Having raised this with PWC, they have assured us that all staff due to be paid will receive their money by the end of play. The reason for the delay relates to their use of FASTER Payments (which can hit your account at any time) as opposed to BACS (which would have gone first thing this morning). If this creates any problems with members in relation to bounced direct debits, you should contact the company in question and ask that they reapply for the money once you have confirmation that your salary had been paid into your account. If you find yourself being charged because there were not sufficient funds in the account at the point at which it was claimed, please get evidence of this and raise with your line manager in the first instance.

Redundancies

Following Wednesday’s meeting we were informed that there would be a further meeting this week which would start the individual redundancy process for some staff in the DC’s and Support Centre. Since then, we have now been informed by the Administrators that we will not now be meeting until Tuesday morning. As a result, individual consultations are unlikely to start until next Tuesday at the earliest.

Press speculation

Many of you will have seen there is still considerable press speculation about the situation and that various names are being put forward as potential buyers for parts of the business. At the time of writing, we have had no confirmation that any bids have been made and sadly cannot provide any update. Unfortunately, it is the case whereby a significant amount of press speculation so far has been proven to be false and therefore we must advise members to treat all such reports with caution.

If there are any developments, we will let you know as soon as we hear them. However, having last met the administrators on Wednesday afternoon, there are now no meetings scheduled until Tuesday morning (29th). We will update you of any developments as soon as possible after this meeting.

Pensions

Further to recent updates we thought it best to clarify the position for members in the various Wilkos pension schemes. For members in the Scottish Widows and People’s pensions, every penny of your pension is protected. These funds are held by the pension providers, and they will be able to give you an update statement of the value of your fund if you request one.

For members in the Wilkos defined benefit scheme, pensions administrators, Spence and Partners, have been appointed. As this scheme closed to new entrants in 2003, this will not impact on anyone who started employment after that date. For those of you in the scheme, the administrators are currently applying Pension Protection Fund rules. These ensure that as an absolute minimum, you will receive 90% of your expected benefits. A full assessment of the scheme will now be undertaken, and it is more than possible that the assets may be sufficient to cover all liabilities, meaning that any short fall could still be made up. This process will take some time, but scheme members can expect more communications on the state of the scheme as a clearer picture emerges. More information can be supplied to members of the scheme at either [email protected] or on 028 9521 0128.

We will provide more information as soon as we have it.



Your National GMB Team

"12,000 of the hard-working Wilko team members now face an uncertain future as they await the closure of their workplaces.

Our thoughts are with each and every one of the Wilko team who worked through the difficult times during lock downs as essential workers. The front-line team members in stores, distribution centers and head office were all instrumental in making Wilko a special place on the high streets and retail parks of the UK. They will be missed"

Paul McGuire, Regional Officer for Wilko

23rd August 2023
WILKO UPDATE
Dear Colleagues
At a meeting today we were informed that the sale of a significant part of the business to a
buyer has fallen through. This means that there is no longer any prospect that the majority of
the business will be saved.
For staff at the Support Centre and at the Distribution Centres (DCs), this means that
redundancies will start over the coming week prior to closures at some point very soon based
on progress around any store programme.
For staff in stores there remains a possibility that some might be bought, either individually or as
part of larger packages. However, we must advise that we now expect significant
redundancies amongst store staff albeit the timing of this is uncertain.
In the meantime, stores will continue to trade, and staff will continue to be paid. The
redundancy process has commenced for staff in the DC’s and Support Centre as their
operations reduce in line with any store programme.
GMB will continue to support members through this process and will fight to ensure that
members are consulted as per the law and that you receive every penny you are entitled to.
We will not forget the incompetence that has led to this collapse, and we will not forget the
dividends paid to the millionaires who gambled your jobs on their whims. We will fight to ensure
they are held accountable for the simple reason you deserved so much better.
We will update you further over coming days.
Your National GMB Team

Bulletin 18th August 2023- Wilko Administration Update

Dear Colleague,

GMB’s National Secretary and your National Convenors late yesterday met the Administrators along with the company as part of the formal consultation process. As this was an initial meeting, it was very much about agreeing the process moving forwards, with meetings to take place at least every Tuesday in order to ensure both that we are kept up to date with developments and that your voice is heard.

In terms of updates from the meeting, the one useful piece of news at this stage relates to the fact that the administrators have confirmed that there have been expressions of interest from organisations who are considering taking over at least some parts of the business. Whilst these are still at an early stage, it does at least mean that there are genuine grounds for hope although we will have to wait to see if these turn into viable, concrete offers.

Whilst this process continues staff will continue to be paid and kept on. All stores are continuing to trade, and deliveries of new stock will continue. We know that staff have been unsettled by new ‘everything must go promotion’ but we have been assured that this is taking place in all stores and has been implemented to get stock moving and improve the company’s cash position. Hopefully this will improve trading in the short turn and boost the chances of rescue.

We will continue to keep you updated after each meeting.

Yours sincerely
Your National GMB Team

GMB WILKO ADMINISTRATION UPDATE

Date: 11/08/2023

Dear GMB members,

We know that the coming days and weeks will be incredibly tough for you. As Wilko enters administration, we want to ensure you that GMB is doing all it can to protect your job. In the event we cannot do this we will do all we can to ensure your rights are protected.

We know that uncertainty is one of the worst things, sadly GMB cannot provide you with the much-needed certainty you deserve, right now, but we can do our best to answer some questions:

Where are we at currently?

GMB continues to meet with the administrators from Price Waterhouse Coopers. We will meet them regularly throughout this process and will enter formal consultation with them once that starts. GMB will now deal directly with the administrators in matters relating to your employment. The administrators have told us that their priority and focus is to find a solution for the business, including trying to find a buyer for some or all of Wilko.

What happens next?

The administrators will write to you at home confirming that stores will continue to trade and that you are expected to keep coming to work. They have confirmed that all hours worked will be paid and that your terms and conditions will be honoured. This includes sick pay, holiday pay, maternity, paternity, etc. For example, if you are currently off sick you will be paid in line with your contract of employment.

There are now several possible scenarios. In the event a buyer is found for part or all of Wilko there may be what is called a TUPE transfer of your employment from one employer to another with length of service and terms and conditions protected.

There may also be a redundancy consultation. The numbers and timescales involved in this will become clearer in the coming days, once the administrators understand what is required.

What am I entitled to?

If you are made redundant you are entitled to statutory redundancy pay based on your age and length of service. You can calculate this on the Gov.uk website. Your statutory redundancy pay will be paid through the redundancy payments service, is tax free and is not subject to any deductions. You are entitled to statutory redundancy pay if you are an employee and have over two years continuous service.

You must remain in employment with Wilko to receive this payment. This is very important, particularly for those colleagues with considerable length of service. The process for claiming this will be explained by the administrators and the redundancy payments office if and when it is needed.

Any holiday pay owed is also paid by the redundancy payments service (up to 6 weeks).

You are also entitled to up to 8 weeks unpaid wages; however, the administrators have informed us that it is unlikely you will need to claim for this.

You are entitled to statutory notice pay of one week’s pay for each year worked up to a maximum of 12 weeks. The government can make deductions from this after you have left employment if you get another job or claim benefits. This will be explained in more detail if this scenario arises.

Potential Claims?

The GMB has seen law firms approaching Wilko workers online offering to take claims on their behalf. As a GMB member you are entitled to all money owed to you if you make a successful claim through your union - we do not deduct a fee, like private law firms.

However, it is currently too early to say whether you have a claim. The administrators have so far committed to ensuring full and appropriate consultation and are confident they have the time required to achieve this. Our aim is to work with the administrators as closely as possible and monitor the situation as we progress.

If we believe you have a potential claim, we will advise you of this and provide you with the support to make it.

Pensions

Wilko has a pension scheme that closed to new entrants in 2003. There has been speculation that there is a significant deficit in this scheme. We will be contacting the pensions regulator for further information. In the event there is a deficit you are entitled claim 90% of your pension entitlement through the pension protection fund. Please note this only applies to members of the Wilkinson company pension scheme.

Nadine Houghton

GMB National Officer

The latest from GMB on the developing situation at Wilko.

Wilko Member Update | GMB Union The latest update from GMB National Officer Nadine Houghton for GMB members at Wilko, as the company is expected to enter administration today.--------------...

Latest video update from Nadine Houghton, National Officer - 9th August

Important Update for Wilko Members | GMB Union The latest update from GMB National Officer Nadine Houghton for GMB members in Wilko.---------------------------------------GMB Union organises workers in bo...

Bulletin 4th August 2023

COLLEAGUE UPDATE



Dear Colleague,

As you will be aware following the various communications sent out over the last 24 hours, Wilkos are in the process of appointing administrators. This has led to a flurry of media stories, and we thought it best to update you of the position where we find ourselves today.

What is likely to happen over the next fortnight?

Meetings are continuing to take place between the company and various potential investors who may decide to invest. As Wilkos has a good brand name, fantastic staff and loyal customers, we still believe that there is a decent possibility that this will happen which would then save the business moving forwards. If a suitable investor is found, GMB will look to meet with them as soon as possible in order to understand what, if any, changes are likely and to ensure that your voice is heard as the future of the business.

What happens if the company goes into administration?

If the company formally goes into administration, the administrators will make all decisions on the company’s future. This will include deciding as to whether to close the business with immediate effect or to keep it running for a period, either to identify a buyer or simply to sell off stock. If the administrator is appointed after the ten working days, we will be looking to have urgent meetings with them to get an idea as to their plans.

Will I be paid if the company goes into administration?

As long as you continue to make yourself available for work, you will continue to be paid until you are either formally made redundant or the business closes. This applies both to the next week prior to the appointment of administrators and the period after if they do not formally shut the business.

If the company closes, what rights do I have?

For staff with over two years’ service, you have a right to a redundancy payment. If the company goes into administration, these payments will be dealt with by the Redundancy Payments Office which is a government body which would pay the redundancy to you directly. There is a separate process for notice pay but the same position applies.

What is my entitlement to redundancy pay?

All staff with over two years’ service are entitled to statutory redundancy pay. This is paid without any deductions for tax and NI. In terms of the amount of redundancy you will receive, this is decided by a formula which varies according to your age and years’ service. You can calculate your redundancy at: www.gov.uk/calculate-your-redundancy-pay

In practice, your basic entitlement to redundancy is:

· Half a week’s pay for each full year of service when you were under 22.

· One week’s pay for each full year of service when you were between 22 and 40.

· One and a half week’s pay for each full year of service when you were 41 or older.

A maximum of twenty qualifying years are included in the calculation for redundancy pay. Weekly pay is also capped at £643, meaning the maximum amount of statutory redundancy you can get is £19,920.

In the event that redundancy payments need to be claimed from the Redundancy Payments Office, GMB will assist you in ensuring that you get every penny that you are entitled to.

What is my entitlement to notice pay?

You are entitled to one week’s notice pay per completed years of service up to a maximum of twelve weeks. All staff with more one month’s service are entitled to receive at least one weeks’ notice pay. Notice pay is paid on the basis of an average of your previous twelve weeks pay prior to losing your job. Unlike redundancy there is no maximum amount for weekly, but it is paid subject to tax and NI.

Will I be entitled to anything else if I lose my job?

At this stage this is difficult to answer, but in similar cases in the past, Unions have been able to progress failure to consult claims on behalf of members if the administrators do not consult prior to making people redundant. Under the law, members are entitled to up to 45 days consultation prior to a redundancy and when these rights have been bypassed in the past by administrators, Unions have been able to claim collective awards which are then paid to members covered. Whilst we cannot at this stage predict what will happen, we strongly recommend that you stay in membership whilst we fight to get you the best deal possible.

What happens to my pension if the company closes?

For the majority of members who are in the money purchase pension (with the People Pension or Scottish Widows), there will be no impact on your pension other than the fact that there would be no future contributions going in. For long serving staff who have money in the old final salary scheme, this is more complicated. However, over the last decade a number of assets have been moved to this scheme meaning that we are confident that your entitlements are fully protected. As an absolute worse-case scenario however, you would receive at least 90% of your entitlements as a result of the fund being covered by the Pension Protection Fund.

As stated above, we are still hopeful that a rescue package can be negotiated, and the company saved. However, we have provided the information above in order to provide clarity for members as to their rights in a worst-case scenario.

We will update you further next week when we have more news.

Yours sincerely

Andy Pendergast

National Secretary

Please see the latest Wilko member update.

Wilko Member Update | GMB Union A message for GMB members at Wilko following the news that the company has announced its intention to appoint administrators.GMB is hopeful that investment c...

Bulletin 18th July 2023

Wilko Contract Base Review following 2023 Pay Deal

Dear Member,

A key element of the April 2023 pay claim was that wilko work with your GMB Negotiating Team on increasing the size of members contracts to more accurately reflect the hours usually worked.

A working party was established to establish principles and review a small number of stores during the last few months. It was agreed that stores with a contract base of 82% and below which tend to have larger amounts of overtime would be reviewed with members who regularly work at least 20% over their contracted hours or with contracts of less than 6 hours to be focused on.

The criteria also included the store being able to meet its wage budgets and operate flexibly in line with the ideal schedule alongside the workload being present. In addition to this any contract increase had to be to a standard contract point of 6, 12, 16, 20, 25, 30 or 35 hours.

810 team members working in the identified stores met the criteria and were individually spoken to. These discussions resulted in 421 team members choosing to increase their contractual hours and guaranteed weekly income, with 2,474 additional hours each week now committed to members contracts. 389 team members chose not to increase their contract due to personal, financial or educational reasons, with a small number of these being unable to do so at this time due to a lack of hours within the store.

During the next 12 weeks all team members who regularly work at least 20% over their contracted hours or have a contract of 3, 4 or 5 hours should be spoken to with an increase in contracted hours offered where appropriate. The same criteria around budgets, flexibility and standard contracts as above will apply.

If you would like an increase in your contracted hours and believe you may fall outside of the above criteria, please make this known to your store manager as soon as possible so that you can be considered if additional hours are available as part of this phase.

Your GMB Team will continue to stand by your side during this uncertain time. For advice, support or representation please contact your GMB Convenor:

North & Midlands: Carol Robertson [email protected] 07774 684 046

North & Midlands: Rachel Clarke [email protected] 07774 682 401

Wales & South West: Martyn Butler [email protected] 01633 883 616

Southern & London: David Bartlett [email protected] 07419 988 869
DC1 & Head Office Mick Newton [email protected] 01909 505 589

In times of uncertainty, it is important you know that your union is on your side. Please ensure that any non-members join here www.gmb.org.uk/join

In solidarity,

Nadine, Rachel, Carol, David, Mick & Martyn

Bulletin 14th July 2023

Wilko Finances – Company Update & CVA FAQ’s

Dear Member,

Following the most recent team member update from wilko, please see below our answers/understanding of the position relating to some of the most frequently asked questions received.

Question: I have noticed significant availability issues within my workplace lately, is this because wilko are intending to close my store?

Answer: Wilko have shared with you that they are having significant challenges with stock supply due to credit limits with suppliers. They have confirmed there are no intentions to close any stores and that the current intake of stock continues to be focused and allocations weighted to generate the highest revenue in the short term.

Please be assured, the lack of stock is not based on wilkos intention to close your store at this time. It is simply a business decision to send it where it will generate the most cash.

Question: Wilko have spoken about recapitalisation of the business what does this mean?

Answer: Wilko are looking for an injection of cash in to the business to fund an increased supply of stock. This could come in the form of debt for example a loan from an external investor or the sale of equity (shares). If shares were sold this would be to specialist providers who work in the field. Any sale of shares would dilute the ownership of the existing shareholders and mean the Wilkinson family no longer solely own the business.

Question: The press have reported wilko may be entering into a CVA? What is this and what does it mean for me?

Answer: A company voluntary arrangement (CVA) is a tool for business rescue, although considered a form of insolvency it is designed to give a viable business the chance of recovery. It is a way of wilko being able to agree with creditors, suppliers and landlords a way of paying off debts over a defined period and of altering any amounts of rent to be paid during that time. Some well-known companies that have previously used CVA’s include New Look and Homebase.

If wilko do enter into a CVA it is unlikely to change a great deal for team members. The turnaround plan for wilko would remain as is.

Question: Could my store close?

Answer: Wilko have indicated they have no intentions to close stores. However, recent press speculation has highlighted what may happen if a CVA is agreed which is that some landlords could decide to call in their leases, in this event there is the possibility that the store will need to close or relocate but it is unlikely this will be a significant number.

Question: What could this mean for me and my continued employment with wilko?

Answer: At this time, it is difficult to say, however a restructuring program has already begun and transformation of store staffing levels and operations are well on the way to completion.

Stores should continue to trade as normal throughout the process until you receive further information relating to your store.

Question: Will this impact my pay or other wilko benefits such as holiday and team member discount?

Answer: No, Terms and Conditions and pay rates are contractually negotiated with the GMB. All contractual rights would remain as now and any proposed changes would have to go through the usual processes.

Question: Where can I see the latest wilko update?

Answer: The update comes in the form of a video; this is being shown within the communications area in DC’s and all stores should have a QR Code on display to enable team members to view this. If you have not been given the opportunity to watch this video during your shift please contact your Convenor so we can raise this with the company.

Your GMB Team will continue to stand by your side during this uncertain time. For advice, support or representation please contact your GMB Convenor:

North & Midlands: Carol Robertson [email protected] 07774 684 046 North & Midlands: Rachel Clarke [email protected] 07774 682 401 Wales & South West: Martyn Butler [email protected] 01633 883 616 Southern & London: David Bartlett [email protected] 07419 988 869 DC1 & Head Office Mick Newton [email protected] 01909 505 589

If you require any independent emotional support or financial advice please remember you have access to PAM assist wilko’s employee assistance program, contact and log in details can be found on your workplace noticeboard alternatively speak to your line manager or convenor.

In times of uncertainty, it is important you know that your union is on your side. Please ensure that any non-members join here www.gmb.org.uk/join

In solidarity,

Nadine, Rachel, Carol, David, Mick & Martyn