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A worker at Marks & Spencer (M&S) who “blew the whistle” on the high street giant’s plans to slash redundancy terms for more than 60,000 staff has been suspended and faces a disciplinary hearing.
The Times revealed last week that M&S plans to cut redundancy pay by up to 25 per cent as part of proposals that have triggered a fierce backlash among staff, who fear a widespread round of job cuts.
The GMB today said that an employee, who has worked at the retailer for 25 years, had been suspended.
He will be represented by the union at the disciplinary hearing next Monday - the day the new redundancy terms are due to come into force.
A spokeswoman for M&S said: “This is an internal matter and we are not commenting any further.”
The GMB said it feared the company was preparing to make job cuts because of the changes to redundancy pay.
Maria Ludkin, the GMB's legal affairs officer, said: "I hope Marks & Spencer will realise they have over-reacted. They are being very hard-nosed about the whole thing and acting as though he's responsible for stealing the Colonel's secret recipe. He's only aired widely-held views and concerns about the changes being proposed.
"It's a clear case of bullying. M&S has always been based on its staff. It would be a shame to see that change."
M&S, which issued a shock profits warning in July, has insisted that the new redundancy terms will still be more generous than those offered by most of its rivals on the high street.
The group is consulting with staff representatives on its Business Involvement Group over the move, which would limit the maximum payouts from 70 weeks to 52 weeks.
A memo seen by The Times shows that a typical 49-year-old employee with 30 years of service would see their possible pay-off fall from £35,000 to £26,000.
Those aged over 41 would get three weeks pay per year worked instead of the current 3.75, while staff aged between 22 and 40 would receive two weeks instead of 2.5.
The Business Involvement Group has warned the M&S board that the proposed changes had caused “an unprecedented level of concern and anger”.
The GMB union contrasted the proposed changes with the £500,000 handed to Steven Esom, M&S's former director of food, who left in July.
Paul Kenny, GMB general secretary, said: ""We are fearful that job cuts are on the way at M&S. Why else would they cut their existing policy if they did not intend to use it?
"Why do people at the bottom get the sack on the cheap while the top bosses get large payouts even when they leave having messed up?"
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Surely it's now time to introduce a legal link between directors' and employees' remuneration so everyone in the team wins or loses. It's too easy for bosses to compensate for their poor management by slashing staff pay or forcing redundancies while continuing to boost their own rewards.
Chris K, Cheltenham, UK
To A Harris,
Join the real world. If the law is used solely to protect the rich it should be changed.
Dick , South Hamilton, USA
I had a temp job in M and S about 5 years ago. They treated their temps really badly. I was refused a reference as I asked to be released from my contract a week early due to moving house, yet they were aware of this when they offered me a job. I haven't shopped in M and S since.
Linda, Fife,
GBP26k for 30 years of service is harsh. M&S have scored a PR own goal with this one.
Fred, Sydney, Australia
Buster I emphathise with you. I am no socialist but I agree with people being treated with respect and not shoddily. Sledom do we hear of these failed leaders of globalist corporatists falling on their own swords. It is the little man that pays each and every time. vote ukip
R McAuley, Antrim, UK
A company that has lost its way. It used to be about its people, now it resents its people by doing things like this. i shop with them less and less as it is just not what it was.A pity.
Johnny Norfolk, Mileham, England
t is about time Marks and Spencers acknowledges failure by the bosses.
Sue, Southampton, Hampshire
Do you EVER read the financial pages? Do you have ANY idea what you're talking about?
Marks and Spencer's has been brought back from the brink. Share price, dividends, profit, employment... Success!
James, London, UK
Don't the employees have a contract of employment that stipulates redundancy pay levels ?
Ifan Morgan, Muscat, Oman
Marks and Spencers should be ashamed of itself. They pay their bosses far too much. They are overpriced and hypocritical. Ladies clothes are disgraceful and very poorly made. Customer Service is appalling. It is about time Marks and Spencers acknowledges failure by the bosses.
Sue, Southampton, Hampshire
What grubby behaviour from a so-called British institution. I hope other former customers of Marks and Spencer make their views known to the company's senior management. But Laura from London's comments are quite incredible - the sort of thing a particularly arrogant and out of touch manager says.
Paul, Leeds,
Buster of Birmingham: Why should you complain about others receiving more redundancy pay than you? Pure unadulterated envy is a sickness that is helping to ruin the country. If M&S staff can negotiate a better deal, good luck to them I say. It's no skin off my nose, nor yours Buster.
Stuart, Palma de Mallorca, Spain
I received the basic minimum redundancy package when I lost my job after 25 years, and I don't see why anyone should be entitled to any enhanced payments, No-one. It should be a level playing field.
Buster, Birmingham,
MS is a commercial organisation that was making a legitimate and legal change to its policies
The employee who was in a position of trust should be dismissed for breach of confidentiality of company information. He/she cannot be considered a whistleblower.
A Harris, Kettering, UK
The statement from M&S that they are ahead of the UK average doesn't wash. The UK is the poor man of Europe when it comes to redundancy pay. e.g. In Belgium, the 49 year old quoted in the article would get roughly 2 years pay as a minimum with many blue chip companies paying significantly more (3yr)
Steve, Basel, Switzerland
So, what difference has a Labour government made in the last 10 years - none whatsoever...The workers get hammered, the incompetent bosses a huge payout. This is your legacy Mr Brown, Mr Blair et al. Nothing to be proud of, is it?
Dean, Manea, England
Why has this M&S whistle blower been suspended. Surely this policy should be debated in open forum, and staff feedback should be possible on these changes.
What are the board trying to hide?
Stewart , Belfast, United Kingdom
I see other comment just ignores the fact that terms and conditions (however generous) which people sign up to can be thrown out when it suites mangement. The original generosity is part of the contract not to be discarded on a whim. Bullying whistle blowers just confirms poor management practice.
mikegee, bournemouth, uk
well that will save rosie a 25 year redundancy payment wont it,just sack the person instead,hope he/she doesnt need to sell his/her shares though -what are they at the moment - oh yeah about 2 quid.
david devonport, Great Yarmouth, UK
The reason that senior executives receive large sums when dismissed is because one day it will happen to them and there is no incentive to change the current practice.
Brian , Baldock,
M+S is the iconic store of the 21st century. A smoothly plausible but ineffective boss; boring, vastly over-priced goods; an unrealistic view of its position in society; and, as now revealed, a culture of cover-up where an employee trying to warn colleagues about a lying management is 'disciplined'.
eric campbell, harrogate, uk
Is there not a law that is supposed to protect whistleblowers?
martin, sheffield, uk
It should be illegal to fire employees for publicly discussing pay and conditions; firms should not be able to use the threat of dismissal in order to pay unfairly. All companies should be expected to have a transparent pay spine including inflationary increments and a fair system of bonuses.
Helen, Oxford,
In the USA a contract is a contract. A company can bring in a new contract but it only applies to new workers. The old workers retain their rights offered when the joined unless they volunteer to take a retirement package.
wxalexander, Delta, Canada
"Why do people at the bottom get the sack on the cheap while the top bosses get large payouts even when they leave having messed up?"
Ironically, to keep their mouths shut!
wouldn't want "whistle blowing" at the top, would we?
Graham , Littlehampton,
If the redundancy package had been cut to Statutory Redundancy Pay, then employees of M&S would have cause to complain. The terms of SRP are 1.5 weeks pay per year over the age of 41 and one week per year between 22 and 40. The 49-year-old in the example would get less than 11K
Andrew, South Croydon, UK
Even with the cuts to M&S's redundancy policy the amounts payable are extremely generous when compared to similar employers. Breaching confidentiality is usually gross misconduct. And yes, job cuts may well be on the way - it is called recession, folks.
Laura, London,