News earlier this week that less than a third of The Warehouse Group [WHS.NZ] workers will go on strike because they see the company as the big bad Christmas Grinch is bad short term for the company because it comes at a time of year when the bulk of their sales and profit is made but it is nonetheless another opportunity for people like myself to load up on the Christmas bargain that Warehouse shares could become if the industrial dispute drags on.
"Project Invigorate" the Warehouse' initiative to streamline and save costs includes the ability for management to direct workers into more flexible hours and conditions. Approximately 7500 staff work at the big red sheds and the bulk of the staff, who are not unionised, agree with management and so don't have a problem.
As I said above the short term prognosis if a strike is called and it drags on means that sales and profit for the next reporting period will be down but in the long term savings from increased labour flexibility along with logistics changes and inventory tweaks will mean bigger profits and more dividends for owners like myself and clearly that aint a bad thing.
The company is getting bad press in the mainstream media and they are largely behind the union from what I have been reading but below is typical of some of the coverage:
"All the staff were happy in their job. The managers used to be more flexible with the hours, they understood our personal circumstances, they used to work around our lives instead of us trying to work around the company's life. NZ Herald
I mean hang on a sec, don't you realise your boss is employing you ! at a time when economic circumstances are tough.
While I am for treating workers well, one has to realise that the company is there to make money and while you are an important part of that the company deserves the right to do what it sees fit to run their business.
The majority of Warehouse employees agree with management and only a handful of workers whipped up by a socialist union are pissing in the wind.
Time for them to go elsewhere get another job and let us run the company how we see fit.
With every cloud though there is a silver lining. I will be poised to buy if the share price drops.
Thanks to the Union for that.
Warehouse shares dropped 10c yesterday on the news and my interest will be piqued at around the $3.75 mark.
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