Workers at luxury fashion retailer Net-a-Porter will vote on possible strike action after being told wages will fall short of the London Living Wage, despite what unions say is the company’s previous commitment to accept the level.
More than 100 employees at the company’s fulfillment center in Charlton, south-east London, will take part in a formal vote organized by GMB. The vote will determine whether labor moves forward with industry in a dispute centered on pay levels and the cost of living in the capital.
The row comes at a critical time for the online luxury retailer, which recently completed a consultation on redundancies across all parts of its operations.
According to GMB, Net-a-Porter committed by 2021 to pay staff the London Living Wage, a voluntary rate calculated annually to reflect the cost of living in the capital.
However, the union says the company has now raised the minimum hourly rate for its low-wage workers. Under the current offer, workers will receive £14.41 an hour, which the union says falls short of the level needed for workers to maintain a decent standard of living in London.
The London Living Wage is set independently by the Living Wage Foundation and is widely accepted by employers who want to demonstrate fair pay practices in high-cost regions such as London.
Union representatives say the dispute has fueled frustration among warehouse workers facing heavy workloads and rising household costs.
Craig Prickett, regional convenor of the GMB, said workers were feeling the impact of rising living costs and organizational changes at the company.
“For a high-end fashion brand that caters to wealthy clients around the world, it is unacceptable that people who do this work are struggling in London,” he said.
“Employees are already facing rising costs and increased workload following the recent restructuring.
“Instead of recognizing their contribution, the company has offered a salary proposal that keeps the salary below what is required to live in London.”
Prickett added that union members preferred to resolve the dispute through negotiation rather than industrial action, but warned workers were becoming increasingly frustrated.
“GMB members do not want to take action to strike, but they deserve fairness, respect and wages that reflect the cost of living in the capital,” he said.
Net-a-Porter operates as part of the global luxury retail industry, selling high-end fashion and designer accessories to customers around the world. Products sold through the platform often carry premium price tags, with items ranging from bags costing £9,000 to couture dresses costing more than £14,000, and jewelery worth more than £150,000.
The difference between the company’s comfortable position and the wage dispute has become a central argument in the union campaign.
Charlton’s warehouse plays a key role in the retailer’s inventory network, handling orders and shipping for customers across the UK and international markets.
The dispute also follows a recent process of not completing work within the business. IGMB says that some workers who volunteered to be fired during negotiations were told that they will not leave because their jobs are considered essential to the company’s operations.
Union representatives say this has contributed to increased workloads for remaining staff, who are now being asked to handle more orders during peak trading hours.
The combination of heavy workload and salary concerns has increased tension between workers and management.
The outcome of the strike vote will determine whether warehouse workers move forward with industrial action.
If members vote in favor of him, the GMB can coordinate strike action or other forms of protest in an attempt to force the company to revise its pay proposal.
An industrial action on the inventory operations of a large online retailer could potentially disrupt order fulfillment and delivery processes, especially during busy sales periods.
Meanwhile, union officials say they hope the dispute can be resolved through negotiations before strike action is taken.
“We want the company to recognize the value of its employees,” said Prickett. “These workers keep the business running, and they deserve a salary that reflects the cost of living in London.”
