Frasers Group warns Unite against ‘reckless’ strike threats over warehouse pay

Frasers Group has warned Unite the Union against taking “reckless and irresponsible” industrial action after the trade body threatened strikes across the retailer’s warehouses in a dispute over pay.

In a strongly worded letter to Unite general secretary Sharon Graham, Sir Jonathan Thompson, chairman of Frasers Group, said he was “extremely saddened” by what he described as the union’s “inflammatory and confrontational” tactics.

“I therefore hope that you will wish to avoid rash action that will risk causing unnecessary disharmony whilst we are working to protect the interests of our people,” he wrote in the letter, seen by The Telegraph.

The warning comes as Unite pushes Frasers — the retail empire founded by Mike Ashley — to commit to paying the “real living wage” as set by the Living Wage Foundation.

Unite has called on Frasers to raise warehouse pay to £12.60 an hour across the UK and £13.85 in London, up from the current £12.21 national minimum wage.

The union has threatened to move towards strike action if the group refuses to meet those demands.

Frasers said it granted a 7% pay rise in April, lifting wages above the legal minimum, and claimed Unite had failed to submit formal proposals during previous bargaining windows — other than a request last September.

“You’ll appreciate that we are left questioning the union’s real motivations in threatening industrial action,” Sir Jonathan added.

In his letter, Sir Jonathan said the timing of Unite’s campaign was particularly damaging, pointing to new economic pressures facing the retail sector.

He cited the Chancellor’s recent National Insurance increase, describing it as “a tax on jobs”, as well as high business rates and unfair competition from international online platforms that enjoy more favourable tax regimes.

“Frasers is prioritising growth, which is the best way to create sustainable employment,” he said. “The union’s current approach risks undermining that progress.”

Labour reforms reignite strike fears

The dispute comes amid mounting concern from business leaders that the Labour government’s new employment rights bill could embolden unions and lead to more strikes.

Under the proposed legislation, unions would no longer need a 50% turnout threshold in strike ballots — a move employers warn could “significantly deteriorate industrial relations”.

In a joint letter to Business Secretary Peter Kyle last month, several business groups cautioned that the reforms could make it easier for unions to call strikes, threatening workplace stability at a time when inflation and operating costs remain high.

The Government has defended the measures, saying they will “usher in a new era of partnership” between unions, employers, and ministers, benefiting more than 15 million workers.

The pay dispute adds to the challenges facing Frasers Group, which owns Sports Direct, House of Fraser, and Flannels, as it navigates rising wage costs and a slowing retail market.

Chief executive Michael Murray, Ashley’s son-in-law, is pushing a strategy of premiumisation and consolidation across the group, while seeking to streamline its logistics network.

Frasers has previously been criticised by unions for its warehouse working conditions, though the company has since invested in automation and facilities upgrades.

Unite has not yet responded publicly to Sir Jonathan’s letter.

The row underscores a broader tension between private equity-backed employers and increasingly assertive unions amid a shifting political climate.

With Labour’s reforms set to strengthen collective bargaining rights, analysts expect industrial relations in the logistics and retail sectors to heat up in the months ahead.

For Frasers, the immediate focus will be maintaining warehouse productivity and avoiding disruption during the crucial pre-Christmas trading season — while keeping its high-profile founder’s cost-conscious ethos intact.

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Frasers Group warns Unite against ‘reckless’ strike threats over warehouse pay