Statutory code: Punch predicts 415 job losses at contractors and suppliers

By Michelle Perrett

- Last updated on GMT

Related tags: Franchising, Punch

statutory code Punch
Punch Taverns says 415 jobs could go among its external contractors and suppliers if the Government introduces its proposed statutory code as planned.

In its submission, Punch predicted the loss of “400 jobs with outside contractors and advisors (without including any supply chain jobs) due to the lost investment”.

“The impact on jobs if mandatory free-of-tie, the guest ale provision or other parts of the code were to be implemented are disastrous.”

Vianet could lose 270 jobs

It claimed that 270 jobs would be lost through beer flow monitoring company alone Vianet while circa 100 jobs would be lost with legal and professional advisors.

“The total number of direct jobs with external contractors and suppliers, for Punch alone, has been estimated at 415.”

This figure is based on Punch spending £40m on property at an average £100K per pub. Each ‘average’ project is on site for three weeks typically and would involve c18 workmen.

“Each project has c54 man weeks x 400 projects = 21600 man weeks divided by 52 = 415. In addition the company said it would also affect staffing on Punch designers and project managers.

All companies not just 500 threshold

Punch has insisted that if a statutory code comes into force then it should be for all companies and not just those above the 500 threshold. It also claims that franchises should not be included in the code as “in most circumstances do not expose franchisees to stock or [property costs and the risk is not with the franchisees but the pubco.”

The distinction, it argues, should be determined by accreditation with the British Franchise Association. Punch also defended the machine tie.

"To suggest no other product should be tied is nonsensical and would be at odds with other sectors of the economy, such as franchising. McDonalds ties its franchisees to burgers, bread and every other item.”

Related topics: Legislation, Punch Pubs & Co

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