Superquinn job losses blamed on North prices

SUPERQUINN last night blamed the cheap price of groceries in the North for its decision to make 400 staff redundant as part of cost-cutting measures which include the closure of its Dundalk store.

Superquinn, which has 24 shops across the Republic, is the first large supermarket chain to bow to the current economic crisis by cutting staff. The company said the cost-cutting measures were essential to ensure the business remained competitive “through the economic conditions affecting the Irish retail market”.

As well as reducing its 3,300 staff by 400, the company intends to introduce what it described as “more flexible work practices”.

Staff will be put on a pay freeze and there will be no implementation of the 6% pay increases provided for under the new national wage agreement for the foreseeable future.

Superquinn chairman Simon Burke said: “This programme is necessary to secure the future of our business and to protect almost 90% of the jobs in Superquinn.

“We are hoping to reach agreement with regard to the wide-ranging measures with colleagues’ representatives over the coming weeks. These will provide Superquinn with a competitive trading base and avoid putting all of the jobs in Superquinn at risk.”

Following the announcement of the Dundalk store’s closure, the chief executive of Dundalk Chamber of Commerce criticised Finance Minister Brian Lenihan for saying it was unpatriotic not to shop in the Republic.

Bill Tosh said: “What planet is he on to say it’s unpatriotic? We aspire to be an island in the not too distant future and we are in a single European market.” Mr Tosh said the writing had been on the wall for Superquinn and it was time for government action. “It’s time to become proper leaders. To listen to what’s going on and to be connected to the business community affected,” he said.

The chamber estimates an average family shopping basket costs about 40% less in the North and until the supermarkets here “can sort it out so people can buy basic food at an affordable price, the case [against going North] is lost.”

The store is also the anchor tenant in the Carroll Village Shopping Centre and its loss will have a knock-on effect on the numbers visiting it.

Bill Tosh warned businesses in Dundalk would be in major trouble if steps were not taken to make it more attractive than shopping across the Border.

“I went to the Competition Authority and asked them to investigate what is going on. I want them to come to Dundalk and listen to the specific claims we are making about the price differences between the north and south,” he added.