The helplessness of the redundant

Before letting rip at HMV staff, remember that while you have lost your £10 gift card, the person you are screaming at has lost their livelihood.

On Christmas Eve 2008, I found out I would be losing my job. There is no day of the year to find out something like that, but it seems that Christmas Eve is a particularly bad one. I remember it very clearly, even down to what I was wearing. I was packing to go home over Christmas and I got a text off my friend Susie, telling me that the shop we both worked in had been taken over by administrators. And just like that, I knew my job would be gone.

The truth is, it was actually eight months later that my job finally went, but it did go, in the same way a terminal illness sucks the life out of a human. Long, slow, arduous. I worked in Zavvi, previously Virgin Megastore, in Cardiff. I started out as a Saturday girl, and when I graduated university and still didn’t know what to do with my life, I went full time. I’m not looking at it with the rose-tinted spectacles of time, but I loved that place. I loved the fact I was surrounded by music all day. I loved that I worked with strange, beautiful people, who liked all the same stuff I did. If they ever read this, they may laugh, but that shop was the first place I ever felt like I belonged somewhere. I did a lot of finding out who I was while I was there. And let’s face it, as full time jobs go, mine was a complete doss. Maybe I was just lazy. But there was always time to stand around, debating over what music went on next, gossiping about the last night out you had, sleeping off your hangover in the stockroom. It was a wonderful place.

There were tell tale signs for ages. Little things that, had I been more clued up on life, might have made me realise what was coming. Overtime stopped getting paid, fewer Christmas temps, problems ordering new stock, etc etc etc. I remember there being rumours of trouble, talking about it behind the tills. But when I got that text off Susie, I felt like I’d been smacked in the face. And so I reacted in the way any rational person would. I cried all the way home on the train and then I drank two bottles of rum with my friend Brett. I don’t have very good memories of Christmas 2008.

When I went back to work, on 27 December, I wasn’t sure what to expect. To this day, that shift is still the worst eight hours I have ever had. That day I realised how selfish and horrible other people can be. We all got to work and there was a grim determination in the air. It was like none of us wanted to be there, but we would get through it together. Then trading started, and all I remember is being shouted at by angry people who couldn’t use their gift cards. If you know anything about companies who go into administration you will know that gift cards immediately become invalid. It is not the choice of the staff. Let me say that again. IT IS NOT THE CHOICE OF THE STAFF YOU ARE SHOUTING AT. If you are the kind of person who would get angry about that, then think about this. You have just lost your £10 gift card. The person you are screaming at has just lost their livelihood. You may not think there are many people who would be that thoughtless, I certainly didn’t. But for the following six weeks, its all I can remember. We had people who were very understanding, kind, sorry for us. But my overriding memory, sadly, is not of our regulars who came to offer best wishes, but the many people who were angry at us for their loss. I understand the frustration, but I was too busy worrying about how I would pay my rent or find a job in January to be too sympathetic.

So Zavvi remained for a further six weeks. In that time, administrators tried to find buyers for the company as a whole, and then as parts. Smaller shops were closed and their stock passed to bigger stores like ours. It was like bucketing water out of a sinking boat, except it wasn’t water, it was people and their children and their mortgages and their homes and their ability to support themselves. Finally it came down to the last day. We learned from our manager, a long-haired jumpy character named Pete who loved caffeine and flowery shirts, that there was a potential buyer for our shop. He was buying five other Zavvis, turning them into his own company and he wanted ours. But there were negotiations first and it might not happen. So we had to pack up the shop. Literally everything had to be put into boxes and taped up. Every single shelf cleared, every corner of every stockroom emptied. It was the most depressing day ever. I remember wanting to cry, and being really glad my friend Jess was there. She ran the book department and I don’t know what I would have done without here in those few weeks. After work I went to the cinema with my housemates. When I came out of the cinema, I had a text.

"We’re bought!"

Someone had bought Cardiff Zavvi! I still had a job! The next day we rushed back to work, signed new contracts and unpacked the boxes. We were trading by the afternoon under the name Head Entertainment. It was amazing! Back to the pub, this time to celebrate.

But the joy didn’t last long. The following seven months were a stark lesson for me in just how underhand and ruthless some people are in business. It’s quite shocking really. I won’t ramble on with the many, many details of how the whole Head Entertainment mess began, but a basic description would be; evil man buys out desperate shop, evil man screws desperate staff about, desperate staff realise they will lose jobs and also any redundancy entitlement. Evil man wins, desperate staff lose.

It’s a long, complicated story, that I don’t understand entirely, even now, but suddenly, less than a month after we were bought out, we found ourselves in the awful position of knowing that our jobs would end, and that we wouldn’t get any money at the end of it. Somehow it was even worse. And for the months leading up to summer, we all worked not knowing if we’d have a shop to come to the next day. But we had to work. I couldn’t find another job. Some people left. But the ones who remained were all in the same position. Stuck. Helpless. When the final cut came in July and we learned we were closing for good, it was almost a relief. We had to pack the shop up again. We all walked to the pub and had our last lunch together. Then we spent the whole night drowning sorrows. It was nice in a way, the whole thing bonded everyone quite tightly. Some of those people are still great friends of mine, and I hope they will remain as such. But really it was terrible.

It would be another month before I finally found a new job, this time in HMV. I didn’t want to go, and true enough, I hated every day I worked there. I don’t know why. I made some great friends there, people who became a big part of my life at the time, and we had some amazing times together. But I was utterly miserable, and less than a year later, they cut my hours down to one day a week, with 24 hours notice, essentially making me redundant again. And the old feelings returned.

In a society that is built on debt, when you spend two months out of work, and you have credit cards and rent and an overdraft to pay, you can easily be defeated. I had to admit defeat. I moved home, more experienced, maybe wiser, but completely broken. It took me a long time to pull myself back together. It took even longer to get the redundancy money owed to us by Head Entertainment. A two year court battle between us and the owners, entirely put together by our incredible floor manager Ev, a wonderfully funny, eccentric man, with a love of birds and woolen hats. He took them on, at an incredible cost to himself, and he won us the money in the end. But he shouldn’t have had to.

At the end of the day, you can't rant for hours about the government, and corporate companies and business and management. You’d probably be right. None of it is fair. People are screwed over all the time, just because they are small and the companies are big. Companies go under all the time because of mismanagement and greed and power hungry egomaniacs, and the people who suffer most are the people who started off at the bottom anyway. They just get trampled. But ranting doesn’t change anything. Neither does blogging about it. Because now HMV is in trouble and if they doesn’t find a buyer, that’s another 4,000 jobs gone, and whatever you read or write about it on the internet isn’t going to change that.

Except it's not 4,000 jobs. It’s 4,000 people. 4,000 families. 4,000 homes. Just like when our shop went under and it was me and my credit card bills. Jess and her mortgage. Dan and his kids, Tony and his retirement plans. People’s lives thrown into absolute chaos. It’s the scariest thing that ever happened to me, and probably to a lot of them too. I hope people realise that in the next few weeks, when they walk into a HMV and find out they can’t use their gift card anymore.

This piece originally appeared on A Barefoot Girl

People walk past the HMV shop in Piccadilly on January 15, 2013 in London. Photograph: Getty Images.

Caitlin Leyshon blogs at A Barefoot Girl.

Photo: Getty Images
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There are risks as well as opportunities ahead for George Osborne

The Chancellor is in a tight spot, but expect his political wiles to be on full display, says Spencer Thompson.

The most significant fiscal event of this parliament will take place in late November, when the Chancellor presents the spending review setting out his plans for funding government departments over the next four years. This week, across Whitehall and up and down the country, ministers, lobbyists, advocacy groups and town halls are busily finalising their pitches ahead of Friday’s deadline for submissions to the review

It is difficult to overstate the challenge faced by the Chancellor. Under his current spending forecast and planned protections for the NHS, schools, defence and international aid spending, other areas of government will need to be cut by 16.4 per cent in real terms between 2015/16 and 2019/20. Focusing on services spending outside of protected areas, the cumulative cut will reach 26.5 per cent. Despite this, the Chancellor nonetheless has significant room for manoeuvre.

Firstly, under plans unveiled at the budget, the government intends to expand capital investment significantly in both 2018-19 and 2019-20. Over the last parliament capital spending was cut by around a quarter, but between now and 2019-20 it will grow by almost 20 per cent. How this growth in spending should be distributed across departments and between investment projects should be at the heart of the spending review.

In a paper published on Monday, we highlighted three urgent priorities for any additional capital spending: re-balancing transport investment away from London and the greater South East towards the North of England, a £2bn per year boost in public spending on housebuilding, and £1bn of extra investment per year in energy efficiency improvements for fuel-poor households.

Secondly, despite the tough fiscal environment, the Chancellor has the scope to fund a range of areas of policy in dire need of extra resources. These include social care, where rising costs at a time of falling resources are set to generate a severe funding squeeze for local government, 16-19 education, where many 6th-form and FE colleges are at risk of great financial difficulty, and funding a guaranteed paid job for young people in long-term unemployment. Our paper suggests a range of options for how to put these and other areas of policy on a sustainable funding footing.

There is a political angle to this as well. The Conservatives are keen to be seen as a party representing all working people, as shown by the "blue-collar Conservatism" agenda. In addition, the spending review offers the Conservative party the opportunity to return to ‘Compassionate Conservatism’ as a going concern.  If they are truly serious about being seen in this light, this should be reflected in a social investment agenda pursued through the spending review that promotes employment and secures a future for public services outside the NHS and schools.

This will come at a cost, however. In our paper, we show how the Chancellor could fund our package of proposed policies without increasing the pain on other areas of government, while remaining consistent with the government’s fiscal rules that require him to reach a surplus on overall government borrowing by 2019-20. We do not agree that the Government needs to reach a surplus in that year. But given this target wont be scrapped ahead of the spending review, we suggest that he should target a slightly lower surplus in 2019/20 of £7bn, with the deficit the year before being £2bn higher. In addition, we propose several revenue-raising measures in line with recent government tax policy that together would unlock an additional £5bn of resource for government departments.

Make no mistake, this will be a tough settlement for government departments and for public services. But the Chancellor does have a range of options open as he plans the upcoming spending review. Expect his reputation as a highly political Chancellor to be on full display.

Spencer Thompson is economic analyst at IPPR