Harrods is threatening to use new laws to bring in agency staff to replace striking workers.
The iconic department store to the wealthy is the first known employer to warn it will take advantage of the controversial legislation, pushed through by the Tories last month.
Around 150 members of the Unite union, who work in services, engineering, maintenance and security at the Central London shop, are preparing to vote for possible strike action in a row over pay.
A letter sent from Harrods to workers this week and seen by the Daily Mirror says the recent change “now allows agencies to provide temporary workers to perform duties normally performed by a worker who is on strike”.
It adds: “We are therefore no longer restricted from engaging temporary workers should any industrial action take place now or in the future.”
Unite general secretary Sharon Graham said: “It comes as no surprise that Harrods, known for catering to the supremely well-off, could be the first employer Unite has come across to threaten low paid staff with the recent legislation designed to break strikes.
“Harrods’ attempts to use this new legislation to bully our members doesn’t change a thing.
“Unite is prepared for all eventualities and our members at Harrods will receive the full backing of the union in their fight for a fair pay rise.”
Workers have rejected an initial 5% pay offer, given inflation is already running at over 9% and is set to hit more than 13% this autumn.
Harrods is owned by the state of Qatar, via its sovereign wealth fund.
The law that allows firms to use agency staff as strike-breakers only came into force on July 21. The TUC and the Recruitment and Employment Confederation – the trade body for agencies – both insisted the change was “unworkable”.
But the Government pressed ahead regardless.
Harrods said: “As a business, we undertake rigorous and regular benchmarking to ensure all colleagues are paid competitively.
“Our base pay rates are very competitive within the industry, and the pay rise we have offered will ensure this remains the case.
“Unfortunately, we are unable to award these payments to all impacted colleagues until pay negotiations have concluded with Unite.”
