Union fears Nathan’s may close 33 shops

Press, 20 February 1980, Page 2

Union fears Nathan’s may close 33 shops

PA Wellington | The • • take-over of McKenzies by L. D. Nathan, Ltd, could lead to the closing of 33 : shops, instead of the 13 originally estimated, said the secretary of the Shop Employees’ Union (Mr G. D. Kelly) yesterday. According to information supplied to the-.union, Nathan’s had “totally misled” the Commerce Commission last year when it; said that, only 10 to. 13 shops would close as a* result of the take-over, Mr Kelly said.,

In November last year the Commerce Commission allowed the merger to gc ahead: In submissions to the commission, both the Examiner'of Commercial Practices (Mr-A. E. Monaghan) anc the Department of Trade anc industry representative (Mr P. - Graham) disputed the company’s redundancy estimates. . ' . Mr Monaghan said he be lieved Nathan’s final estimate of 25 redundancies a.< a result, of the merger was “deceptive.” The company’s original, estimate . had beer 125 to 150 redundancies. Mr Graham said the estimate was speculative and careless. Yesterday Mr Kelly said he *he figure would be much, higher than the final estimate submitted to the commission. “There is absolutely no way in which 33 ; store? could he closed over, the next two years with only 25 redundancies,” he said. „• Mr Kelly said he wanted Nathan’s ’to “confirm or denv” the allegations. . “If Nathan’s is unable or unwilling to denv absolutely that these closings are planned, or if there is any room for doubt, then the Commerce Commission —- which we understand has not yet reported in writing

Jto the Minister — should re--open the case. “If these closings go ,1 ahead, it will clearly demon- • Istrate the lengths to which ’•big business will go to de- • ceive the public and employ- : ees,” he said. In an interview with jNZPA, Mr Kelly refused to 11identify the source of inforj mation on whicn he based dhis prediction • r store clos- : ings. “We have been advised of ijthe names of these by some-,-one whom we believe we lean rely on and who would

be in a position to know. It iis not the sort of thing we ; cou’d manufacture,” he said. The information had been Igiven to the union only this iweek. Mr Kelly said the union would consult’ members on ’any possible action to stop the predicted closings. “We I are’not likely to let the matter rest.” . ' ’ The union believed that j since the commission had (not -reported in writing to i the Minister it was deemed (to be still sitting and could still attach conditions to its ; approval of the take-over. The union wanted conditions ensuring that no more than 113 stores closed and that redundancies did not exceed the estimated 25. Replying to Mr Kelly’s allegations, Nathan’s groun managing director (Mr B. S. Cole)', said yesterday that they-- were “totally without 'foundation.” . 1 .“Nathan’s sticks- bv„ its I original estimate of 13.” he said, “and it is and always has been prepared to discuss details store by store with (the secretary. . i “The sad feature of h.’s |statement -is that, it will i cause - needless . upset to 'union members whose interests Mr.Kellv is said to represent,” Mr Cole said.