25 January 2017

Final day of work for Pumpkin Patch staff

Today is the final day of work for the distribution centre staff at children’s retail giant Pumpkin Patch.

This brings the company’s 27-year run to an end.

“It’s sad day for distribution centre staff, some of whom have been with the company from the early days,” said FIRST Union General Secretary Robert Reid.

“Most of the fifteen union members at the distribution centre have served between ten and twenty years with the company. One member has been there almost from day one, serving twenty-six years.”

“But the staff’s sadness is mixed with anger. They’ve watched the company they helped build up over the years destroyed by some incompetent and extravagant senior management and director decisions.

Distribution centre staff met with Work and Income New Zealand and Inland Revenue Department officials at the end of last week and with a number of potential employers at the beginning of this week.

“The way the company is structured means distribution centre staff are leaving today without any of their redundancy entitlements. This is another source of anger,” said Reid.

“We’re still exploring all avenues to try and obtain redundancy entitlements for our members. It’s a complex situation because the company that has employed the distribution centre and head office staff, Pumpkin Patch Ltd, doesn’t own any stock. Instead the stock-owning company, Pumpkin Patch Originals Ltd, only employed the retail staff who do not have redundancy agreements. To add to the complexity Pumpkin Patch is in both receivership and administration.”

“Pumpkin Patch retail workers in Australia will receive their full entitlements including redundancy under what’s called the GEER scheme. Under the scheme the Australian federal government assists people who are owed entitlements. But Kiwi workers receive no such protection. FIRST Union is calling for our Government to introduce the same scheme in New Zealand.”

“FIRST Union will be staying in touch with all of its members over this difficult period and will do its utmost to ensure all workers are able to find new jobs,” said Reid.

ENDS

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