Forbes urges H&M to avoid redundancies with Edinburgh call centre closure

Deputy First Minister Kate Forbes has urged retail chain H&M to avoid redundancies if they proceed with plans to close an Edinburgh call centre which employs hundreds of staff.

Workers at the company’s Waverley Gate office were told last week of a proposal to shut the building by December of this year due to the lease expiring in 2025.

Documents seen by BBC Scotland News that were sent to staff state that “everyone working in the centre operation is at risk of redundancy” but that they could be considered for “suitable alternative” roles in the company.

Staff have said that the meeting to announce the redundancies was over within five minutes, leaving those affected in shock.

They also estimated around 200 employees are at risk.

One worker also told BBC News that staff feared their jobs would be outsourced abroad.

Ms Forbes – the Scottish government’s economy secretary – is understood to have met H&M management on Monday to discuss the situation, where she asked them to consider all options before going ahead with any job cuts.

A Scottish government spokeswoman said: “This is a concerning time for employees and their families, who will be anxious about their jobs and livelihoods.

“The deputy first minister has spoken to H&M senior management and urged the company to consider all available options that could remove the need for redundancies.”

She added that the government’s Partnership Action for Continuing Employment (PACE) initiative would be offered to staff if the closure went ahead.

The H&M proposal will see a collective consultation meeting taking place in mid-September, with individual consultations following in October and November.

The office would then shut in the last week of November.

The message to staff states that “this proposal is not based on the performance that you have all contributed towards over the past years” and adds that management are “appreciative and thankful” for the work staff have put in.

A spokeswoman for H&M said: “We constantly evaluate how we operate to ensure that we deliver on our goals and contribute to the overall success of the company.

“The current lease agreement for our customer service site in Edinburgh will end in March 2025. In connection with the lease soon ending, we looked into the scope of our operational set-up at the site to ensure that it is flexible and cost-efficient given current and future change in demands.”

She added the company were doing everything they could to help colleagues but could not provide further details on the number at risk of redundancy.

The firm shut 250 stores globally in the aftermath of Covid-19 outbreak, as the pandemic had moved more shoppers online.