Now that the Dáil, the Irish Parliament, has resumed, the Debenhams struggle has been elevated as a national political issue focusing both on the specific settlement that the workers deserve but also changes that are required that would benefit all workers faced with a similar situation.
In this sense the Debenhams workers are doing more that the Irish Congress of Trade Unions (ICTU) in advancing workers’ rights. This is both a credit to the Debenhams workers but it highlights a dereliction by Irish Congress of Trade Unions who have not championed this struggle in the way they ought to have done. Unfortunately, the same has to be said of Mandate, the trade union representing the workers at leadership level whose overall role in leading this struggle has been wanting.
Corporate sleight of hand explained
In a meeting with KPMG in May organised by Mick Barry TD, it was claimed that the debts of the Irish subsidiary totalled some €19 million and that stock had a sale value of €25 million. Incredibly they have since changed their story to say that the debt is some €225 million.
This claim arises from lenders to the UK parent (including the Bank of Ireland) obtaining ownership of the company in a debt-for-ownership swap, then extending a further loan of £200 million and making the much smaller Irish subsidiary co-guarantor. They now claim that the proceeds of the Irish liquidation will go towards part settling this contrived debt!
They also made Debenhams’ Danish subsidiary co-guarantor but they have since been released from this obligation! Why can’t this be done for the Irish subsidiary?
Some 122 UK stores are now profitably trading. Real debts incurred in the UK can be paid down over time by profits from those stores.
The struggle goes on
From the above facts and figures the Debenhams workers have correctly concluded not to give up their fight but rather to step it up over the last number of weeks. In doing so they are exposing the rigged nature of capitalism that sells workers short time and again, and that this government and its predecessors stand over.
KPMG are unable to complete the task that the court appointed them to do. They are under pressure from creditors to proceed with the liquidation of mostly seasonal stock and have the premises vacated for future tenants. At least one concessionaire unable to access its stock is threatening to no longer supply the UK parent outlets.
This leverage arises from the solid blockades that have extended to the vast majority of stores and provides the best chance for forcing the liquidators, creditors, UK parent and government between them to work out a settlement that satisfies the workers’ bottom line demand of four weeks’ pay per year’s service, which at an estimated €13 million, is entirely realisable. The UK parent is taking the money from the Irish online trade, which in 2018, the last available figures, amounted to €30 million euro.
Recent surveillance by staff from security firm K-Tech, hired by the liquidator, including photographing pickets is probably not simply an exercise in intimidation. It is likely to form part of a legal affidavit that KPMG will supply to the courts as part of an injunction application.
Moves in this direction should be a cue for a response from the workers’ movement. The Irish Congress of Trade Unions should now make the call for all workers to join a national day of protest action in support of the Debenhams workers’ demands being met as well as lasting changes to how liquidations operate in this state. If ICTU won’t respond a direct appeal by Debenhams workers to the wider working class to bring people out in bigger numbers is needed. There is already widespread support for the Debenhams workers and every opportunity should be seized to make that support more active and visible.
Debenhams Retail Ireland Ltd be released as co-guarantor of the UK parents £200m loan to itself!
Money owed by DRIL to the Revenue and proceeds from Irish online sales be set aside to fund an enhanced redundancy package Debenhams workers entitlement to four weeks pay per years service takes precedence over other debts.
The government legislate before the summer recess the recommendations of the Duffy Cahill report as well as legally placing workers at the top of the hierarchy of creditors and obliging full access to company books in liquidation scenarios in the future.
The July ‘retail stimulus’ include direct government investment in safeguarding retail jobs by nationalising major jobs shedding outlets