The chairman of retail giant Frasers Group has urged Unite the Union to avoid “reckless and irresponsible” strike action as retail firms across the UK feel the crunch of rising cost pressures.
Sir Jonathan Thompson, who took the role of Chair in September, has asked the Union’s General Secretary Sharon Graham to reconsider plans to canvas members over industrial action.
“As you know, the retail sector is among those most affected by the government’s recent increase in employer national insurance contributions,” Thompson wrote in a letter seen by City AM.
“This has impacted upon Frasers and has been widely interpreted as a tax on jobs. This has come on top of historic pressures due to high business rates competition from international platforms that benefit from favourable tax regimes.”
Chancellor Rachel Reeves’ Autumn Budget left the retail industry reeling, with analysis from the Centre for Retail Research suggesting over 200,000 jobs and 17,000 stores are set to disappear this year following rising pressures.
Frasers, which includes brands such as Sports Direct, Flannels, GAME, and Jack Wills, paid £530m in taxes during the last financial year.
“I strongly urge you to reconsider, as I believe such action would be reckless and irresponsible,” Thompson wrote.
Frasers urges Union to reconsider strike after pay increases
Thompson said that, despite rising pressures, Frasers had delivered total increases in warehouse basic pay of 33 per cent for day shifts, 37 per cent for evening shifts, and 42 per cent for night shifts.
This also included a pay rise of nearly seven per cent in April 2025 after Labour increased the national minimum wage to £12.21 per hour.
“I am extremely saddened that the Union has chosen to adopt an inflammatory and confrontational approach,” Thompson said with Unite, demanding that Frasers commit to implementing the ‘Real Living Wage.’
The retail chair added that the business had not paid dividends to shareholders and instead invested back into the business as part of its “elevation strategy”.
The strategy includes upgrades to stores, modernising of warehouses, building partnerships and securing long-term jobs.