<p>The Tesco Customer Engagement Centre in Cardiff</p>

Part of 3. 3. Topical Questions – in the Senedd at 3:06 pm on 28 June 2017.

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Photo of Ken Skates Ken Skates Labour 3:06, 28 June 2017

I’d like to thank the Member for the points he raises and the questions as well. I was deeply, deeply disappointed, not just by the decision, but by the way that Welsh Government, and, indeed, many, many workers, came to learn about the proposed closure of the facility. It’s quite apparent now that many employees learned about the decision on social media, which is an entirely unacceptable and not responsible action from any employer. It appears, given today’s news, that Tesco is embarking on a massive cost-cutting exercise with an attempt in mind to cost-cut something in the region of £1.5 billion off their bottom line. There’s been a further announcement today of 1,200 jobs going at their headquarters. I think this demonstrates that Tesco is pursuing a cost-cutting agenda that places profit, sadly, ahead of the workforce.

We’ve had discussions with the company. A meeting took place on Monday. I spoke with the CEO just last week expressing my disappointment, my deep disappointment, at the way that the decision has been reached. I was told again that there was nothing that Welsh Government could have offered or could do to stop what is a purely commercial decision, but I did impress upon the company the need to work with all partners to identify as many opportunities for those affected by the decision to move on to secure and well-paid employment in the sector.

Now, a number of actions are being taken forward as a consequence of the discussions that took place with Tesco just this week. We are calling on Tesco to ensure that any outsourcing of work that takes place considers Wales as an option for employment and for operations. We’re working with a number of interested parties who are looking at potentially using the building as an investment opportunity and an employment opportunity. We’re working with the Welsh Contact Centre Forum, identifying companies that could recruit, and, indeed working with those who have expressed an interest in recruiting. We know that there are at least five significant companies who are looking at taking on those employees who were affected by the decision.

I’m also determined to ensure that the taskforce brings together a number of agencies, including, of course, the contact centre forum, but also Careers Wales and Business Wales and other bodies who are able to assist people in identifying alternative work. It’s worth saying that in spite of what Tesco have decided to do—and they have laid out the reasons why they took the decisions—in spite of that decision, the sector remains in a buoyant position here in Wales. We have many, many immensely skilled people working in the sector. A huge proportion, of course, are employed by Tesco and will be affected by this deeply regrettable decision, but we remain of the view that a significant number will be able to access work opportunities immediately, not just within Tesco, where they could be redeployed, but in those other companies that are looking to recruit very, very soon. We will be working with individuals through the ReAct programme, with businesses, again through the ReAct programme, through the Welsh Contact Centre Forum, and with a number of anchor and regionally important companies, to identify as many job opportunities as possible in what is a buoyant sector.