Superquinn staff to seek stake in firm

Superquinn's 4,200 workers are set to demand a stake in the business from its new owners, The Irish Times has learned.

It also emerged that the staff are likely to get a share of the €270 million due to its owners, the Quinn family, from the sale of the supermarket chain.

The three unions that represent the company's workers, MANDATE, SIPTU and the Bakers and Allied Food Workers' Union (BAFU), will meet the Quinn family next week.

They are expected to demand a goodwill payment from the Quinns, who have agreed to sell the business for a total of €420 million. The family's share of this is estimated at €270 million.

MANDATE general secretary Mr John Douglas said yesterday that the unions will also seek a share in the business from its new owner, the private investor-backed Select Retail Ltd.

"We will be asking them to give the staff a stake in the company," Mr Douglas said. "We have not actually put a figure on it. We will be seeking professional advice to see what is achievable."

Mr Douglas added that the unions hoped to get that advice next week and then enter talks with representatives of Select Retail.

MANDATE, which has about 4,000 members in Superquinn, called a meeting of its shop stewards yesterday, following which it announced that it would be seeking the payment.

A spokesman for the company confirmed that the Quinn family would be meeting the unions next week. He would not predict the likely outcome of the talks, but it is understood that the Quinns are likely to agree to a goodwill payment.

The family's deal to sell the 20-outlet chain became public last weekend. Superquinn was under increasing pressure from bigger competitors, particularly Dunnes Stores and Tesco.

At least part of its problem lies in the fact that its competitors are in a position to outbid it for sites. Its competitors also squeezed it on price.

Of the €420 million total, the Quinns will use €150 million to clear the businesses' debts, and will share the remaining €270 million.

On the basis that he has 45 per cent of the ultimate holding company, founder and executive chairman Mr Feargal Quinn will get €121 million. His five children will get €29.7 million each from the deal.

Select's backers include builder Mr Bernard McNamara and Mr Simon Burke, an Irishman who was chief executive of UK toy shop chain Hamley's. Mr Burke will take over as executive chairman of Superquinn once the deal goes through.