22 February 2005

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Finnish TV-show goes hard on Lidl:
German hard discounter exposed as bad employer and threat to consumers and suppliers

German hard discounter Lidl came out very badly in a prime time television news show aired on the Finnish public service channel on Sunday night. Former employees spoke about draconian controls and demeaning treatment by managers. But not everyone dared to speak out. Two former supervisors confirmed that they could have much to say, but were too afraid to do it.

- In principle, we had to take out our overtime hours in free time, "Laura", a former store supervisor said. She added that store supervisors were told, however, that they are not covered by these rules. - I have not even really calculated how many additional hours I got to work for nothing.

"Laura" also mentioned Lidl's obsession to control its workers: - For instance, they don't trust the sales person, for instance when she takes a banana to work as a snack she must show it to her supervisor, to show that she has bought it from somewhere else, that she has not stolen it. And for absolutely everything, there has to be a receipt.

Young woman worker embarrassed in front of colleagues

Another former employee  Nia Kajaste, a young woman who had barely finished her apprenticeship, told how managers embarrassed her in front of her colleagues:

- I remember that once we had placed the vegetables and fruits where they were supposed to be, and they are in cardboard boxes only stapled one above another. But this has anyway to be done so that all of them are more or less on the same level and that there are no spaces between them.

- I had left a small space, not wider than a hand, and then all workers were brought there to stare at how I had done it wrong, and they continued by criticising me there and then about what I had done.

Hidden money envelopes in a failed attempt to frame shop workers

Juha Ojala, responsible for collective bargaining in UNI Commerce affiliated Services Union United (PAM) confirmed this picture about Lidl's approach to human resource management. Late last year, management had hidden envelopes with money in a number of Lidl stores. They were found by the workers, who of course handed them over to their supervisors.

- What can be controlled like this, whom is it aimed at, and what can it help achieve? This has remained a mystery for us, Juha Ojala said.

Lidl can prove expensive for consumers

Jan Furstenborg of UNI Commerce summarised the more general concerns about Lidl's possible influence on the Finnish market, by saying that also consumers will suffer in the longer run:

- Perhaps one can feel that low prices are always favourable for consumers, he said. - But the price to pay can be that for instance food safety can suffer and product quality go down. We will once again see animal transports on over-long distances and product development will be sacrificed. And at the end of the day, consumers have less of a choice if only price is the competition criterion, he said.

The managing director of Lidl Finland had declined to appear in  the program in person, but was quoted with some comments. Overall, he appeared uneasy about some of the issues - he also said that he had put an end to the hiding of money envelopes, an idea that someone had imported thoughtlessly from Germany.

Lidl has not been meeting expectations in Finland, and as time goes by it starts to become ever more apparent that the German hard discounter has difficulties to adapt to the Nordic culture of respectful labour relations. Recent surveys show that consumer confidence in Lidl is dramatically lower than for its main competitors.