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O2 Looking to Franchise Over 80 of its Retail Stores
Published on:
Telefónica O2 is planning to convert some 82 of its 450 retail stores into franchises, according to the Communication Workers Union.
The CWU claims that cost cutting and risk transfer is behind the decision and fears for job security of the 500-plus people employed in these 82 shops. The union is also concerned that franchising may be applied to more of O2's 450 retail outlets.
The 82 shops are spread across the UK and vary in size, employing between 1 and 11 people each.
Andy Kerr, CWU deputy general secretary, said: "We believe that TUPE will apply so staff will retain their basic terms and conditions such as pay, but there is uncertainty regarding the new pension arrangements which have been months in the making. This is just one of many worrying two-tier elements which threatens to undermine these workers' conditions whilst nominally working for O2."
The CWU added that it understands the company wishes to have franchised the stores out by April 2013 and is placing an advert in a magazine this week seeking possible franchisees.
Tags: [telefonica o2] [UK]
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