Union wants staff on Arnotts board

WORKER representatives at debt-ridden Arnotts department store are set to meet management today ahead of a European Commission decision on bankers taking control of the retail group.

Trade union leaders are expected to seek clarity about how the company plans to address debts of up to €300 million and will demand a worker nominee be appointed to the board.

The meeting with company representatives comes ahead of a European Commission decision next week on whether Anglo Irish Bank can take control of the iconic Dublin store. Independent lender Ulster Bank is also taking part control of Arnotts in a bid to recoup debts owed.

Mandate, which represents 900 workers at the store, said there was concern that any restructuring of the retailer when bankers take control would result in job losses.

“We want a worker nominee on the board and to have a look at the long-term plans of the company and where it is going. There’s no doubt in my mind that if it is restructured, it will entail some pain. It’s the amount of that pain that is the problem or what exactly it is. I wouldn’t rule out some job losses in the future,” general secretary John Douglas said.

Both banks are taking control of the store after lending the retailer funds to purchase and develop properties in and around the Henry Street as part of €750m project called the Northern Quarter.

The banks must wait for approval from Brussels next Monday on whether Anglo Irish Bank, which is now state-owned, can take over the store because of competition issues.

Arnotts Holdings has said trading continues as normal at the store and that jobs at the 167-year-old company “remain secure”.

It also said the store was performing strongly with trading for the first half of the year and ahead of the Irish retail market

Mandate today is expected to meet with representatives from the US-based Paladin Group, consultants hired by Anglo Irish Bank earlier this year to oversee the store’s future and examine any restructuring of the company.

Senior staff and sales workers at the store have expressed concern that the Arnotts brand and the success of business at the retailer is being affected by decisions being made by outside consultants.

The company refused to comment ahead of today’s meeting, other than to say it was with management.