STL DISTRIBUTION, CARLISLE, have entered another consultation period with staff, this time in which up to 30 — just under one quarter — of the 124-strong workforce face redundancy as the company comes to terms with poorer financial results than anticipated over the last year.
All Carlisle based staff have had face to face meetings with senior management and departmental representatives are being appointed for ongoing consultations. It is hoped that a significant proportion of the reductions will be achieved through voluntary redundancy, but approximately 15% of the workforce is likely to face compulsory redundancy once the consultation period ends in April. For all concerned, however, the situation marks yet another traumatic phase in the company’s recent history.
In a trade announcement issued yesterday, CEO Ken Munro reviews some of the challenges faced by the company over the past year, noting that the trade overall is in a period of transition as it struggles with a continuing decline in high street sales combined with increased internet trading and the emergence of new technologies:
… the trade in which we operate is experiencing a period of very significant transition. A combination of a continued decline in overall High street sales, the proliferation of internet traders and the rapid evolution and implementation of new technologies have driven unprecedented change, challenges and opportunities within our sector.
In addition to the factors noted above the prevailing general economic climate combined with unusually harsh winter weather in December has exacerbated the many difficulties that the Trade was facing. STL distribution was not immune from these difficulties and as a result revenues for 2010 were less than planned. As a consequence we face important challenges as we enter the second fiscal year of ownership, challenges which will be addressed in order to secure the future success of the business.
In light of the issues outlined above we are throughout the month of March conducting a consultation with our staff to ensure that we effectively manage costs and importantly, align our business and competencies to a rapidly re-shaping industry landscape.
The company expects to emerge from the consultation in a strong enough position to rise to future opportunities with a clear focus on delivering the best possible customer service and supplier partnership.
The announcement closes with a call to prayer:
Please remember all staff within the group in your prayers as we move through this process.
- My thanks to Pete Barnsley at STL for providing this information.