Union to meet administrator over bookshop chains

Around 1000 people are employed in the 60 Whitcoulls and five Borders stores in New Zealand. Photo / Greg Bowker

Union representatives will meet the administrators of the troubled Whitcoulls and Borders bookshop chains on Monday but it is understood very few of the shop workers will have much leverage to work out a deal if the shops throughout the country close.

The National Distribution Union said today only five shop workers belonged to the union but about 30 workers in the national distribution centre were union members.

The two bookselling chains were put under administration in Australia and New Zealand by Australian parent company REDgroup Retail earlier this week.

Whitcoulls is one of New Zealand's oldest companies. It was originally named Whitcombe & Tombs and began in 1882.

REDgroup has 79 shops in New Zealand under three brands - Whitcoulls, Borders and Bennetts.

The National Distribution Union's general secretary Robert Reid told NZPA today it was an encouraging sign that the administrator wanted to meet the union on Monday so they could learn what future the chains might have.

"Up to now neither workers at the shops in general - certainly our members at the distribution centre - or ourselves, have been appraised either by the company or the administrator on what is going on and what the meaning is for staff and what the scenarios are going to be for staff."

He said people left work on Thursday and heard on the news that the administrator had been appointed.

He said people in the shops had been told little other than not to speak to the media and how to handle gift vouchers.

The Whitcoulls' website announced gift vouchers could be redeemed only by spending the equivalent in cash at the same time.

Borders and Whitcoulls shops put on extra security as aggressive customers showed their anger at not being able to redeem their vouchers without spending more money.

Mr Reid said the union was bracing for the worst and believed people would lose their jobs.

He said administration was a relatively new concept in New Zealand and even when companies continued trading, there were job losses.

"The unprofitable stores might close or things will be shrunk down."

"We are preparing for the worst I guess."

He said the workers at the distribution centre had collective contracts and were entitled to a maximum redundancy of $18,700 but the union members in the shops had individual contracts and may not have any redundancy entitlement.

REDgroup Retail appointed Ferrier Hodgson as voluntary administrators and partner Steve Sherman earlier said in a statement that as far as possible it would be business as usual while an urgent assessment of the business's financial status was conducted and prepared for the first meeting of creditors.

That meeting was expected to take place in the first week of March.

- NZPA