Mike Ashley’s Frasers attacks Unite for threatening warehouse strikes

Mike Ashley’s Frasers has warned union bosses against “reckless and irresponsible” action after Unite issued a strike threat at the group’s warehouses.

Sir Jonathan Thompson, chairman of Frasers, said he was “extremely saddened that the union has chosen to adopt an inflammatory and confrontational approach” to securing pay rises, urging it to reconsider canvassing workers.

In a letter to Unite’s general secretary Sharon Graham, seen by The Telegraph, Sir Jonathan said the threat of industrial action came at a time when retailers were being lumbered with additional costs from the Chancellor’s National Insurance raid.

He wrote: “This has impacted upon Frasers and has been widely interpreted as a tax on jobs. This has come on top of historic pressures due to high business rates and competition from international platforms that benefit from favourable tax regimes.

“I note that as general secretary of Unite, you have recently been critical of the Government for appearing not to have a plan for jobs. Frasers Group is among those companies that are prioritising growth, which is the best way to create sustainable
employment.

“I therefore hope that you will wish to avoid rash action that will risk causing unnecessary disharmony whilst we are working to protect the interests of our people.”

It comes after Unite demanded Frasers commit to paying warehouse staff the “real living wage”, which is a voluntary living minimum set by non-profit the Living Wage Foundation.

The real living wage stands at £12.60 per hour across the UK and £13.85 per hour in London, compared to the minimum wage of £12.21 an hour.

Unite has threatened to take steps towards strike action if Frasers refuses to raise its pay rates to the real living wage.

Sir Jonathan claimed Unite had previously not submitted pay proposals to Frasers during bargaining windows, aside from a demand last September.

Frasers gave staff a 7pc pay rise in April, taking it above the statutory minimum rate.

He said: “You’ll appreciate that we are left questioning the union’s real motivations in threatening industrial action.”

It comes comes amid growing concern that companies could face more strikes following the introduction of upcoming legislation on employment rights.

Business groups last month wrote to Peter Kyle, the new Business Secretary, warning Labour’s overhaul would give unions greater powers to strike. They said this would lead to “⁠deteriorating industrial relations”.

Under the workers’ rights changes, unions will no longer have to meet a legal threshold of a 50pc turnout in a ballot to hold a strike.

Sources last month said they were hopeful that at least some of the proposals would be watered down.

The Government has said the new bill will “usher in a new era of partnership that sees employers, unions and government working together to benefit more than 15 million workers”.

Unite did not immediately respond to requests for comment.