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Network Journal Issue 04 |
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Usdaw makes the case for home shopping jobs
An estimated 19,000 jobs are at risk at a UK home shopping company if the Competition Commission blocks a crucial merger, Usdaw has warned.
General Secretary Sir Bill Connor said there are both strong social and business reasons to support March UK Ltd's £590 million purchase of Shop Direct (formerly GUS home shopping).
The jobs of around 19,000 people, employed directly or indirectly by Shop Direct across the UK, would hang in the balance if the merger is turned down. But Usdaw is also adamant that there is a strong business case to combine the former rivals and create a larger, more efficient company able to compete in the tough and rapidly-changing home shopping sector.
Sir Bill Connor gave evidence to the Competition Commission, on behalf of Shop Direct workers. He said: "The home shopping market has gone through radical change in recent decades and is now much more than just mail-order catalogue companies.
"Most of the bigger stores now have their own catalogue ranges. Internet shopping is large and booming. Banks and other financial institutions are much more willing to offer credit to consumers. In this enlarged vision of home shopping, the merger is clearly not anti-competitive.
"This is simply a case of two companies wanting to become more efficient and able to hold their own in an ever-changing market. Thousands of jobs are at risk if this merger is blocked. Usdaw is committed to backing the merger and supporting our members in Shop Direct."
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