Farmers department store paying 80% of wages, despite claiming wage subsidy

Friday, 10 September 2021

The James Pascoe Group and The Farmers Trading Company received more than $35 million in wage subsidies last year, says First Union retail co-ordinator Ben Peterson.

Farmers department store is paying workers just 80 per cent of their wages in higher alert levels despite receiving the wage subsidy, First Union claims.

The union said it was the only big New Zealand retailer it was aware of that had reduced wages in that way.

Union members had been expressing their concern, First Union national co-ordinator for retail, Ben Peterson said.

Farmers had access to the wage subsidy and was trading outside of level 4 restrictions, and had remained profitable throughout the pandemic, Peterson said.

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Finance Minister Grant Robertson indicates to Parliament’s finance and expenditure select committee that it is a good sign that big firms have not yet applied for wage subsidies.

“Similar companies like Kmart, Briscoes and The Warehouse have continued to pay staff who are forced to stay home at their normal rates. Farmers are the only major brand we deal with who took this route.”

It was not clear if Farmers had applied for the wage subsidy this time around.

Previously, the Farmers Trading Group received almost $24 million in wage subsidy and $4m in resurgence wage subsidy, James Pascoe Ltd almost $3m in wage subsidy and $464,784 in resurgence wage subsidy, and Whitcoulls $3.6m in wage subsidy and $584,190 in resurgence wage subsidy.

Farmers has been approached for comment.

The group does not declare its profits publicly, but workers at some of the biggest stores said sales had increased since it reopened and remained busy.

Grant and Marilyn Nelson, trustees of the Gama Foundation charitable trust, say there has been a transfer of wealth through the wage subsidy scheme.

Peterson said store managers would return to work at level 3 to begin shipping online sales while others were at home on reduced wages until level 2.

Peterson said the pay cut disadvantaged workers when they most needed support.

In February, First Union said Farmers had cut staff numbers and pay during Covid-19 lockdowns.

The union represents about 800 Farmers workers.

In February, wealthy philanthropists Grant and Marilyn Nelson criticised the Norman family, who own Farmers, Whitcoulls and Pascoes for claiming millions in subsidies.

Grant Nelson said at the time, he was concerned about rising inequality and the transfer of wealth through the wage subsidy to those who were already well off.

“Over the past few decades there has been steadily increasing inequality and the $14 billion wage subsidy has made the situation a lot worse,” he said.

He said the Norman retail empire probably bounced back from last year’s lockdown like other chains including The Warehouse Group, Briscoe Group and Michael Hill International.

The NBR Rich List estimated the Norman family’s wealth at $560m in 2019 through their ownership of jewellery chains Pascoes, Stewart Dawsons, Prouds, Goldmark, and Angus & Cootes, as well as homewares chain Stevens, Farmers, and Whitcoulls.

CORRECTION: An earlier version of this story said money had been claimed in resurgence support payments. It was paid as resurgence wage subsidy. (Updated: September 11, 9.15am)