Credit:  DaveBleasdale/Flickr

Ritzy cinema could sack 20% of staff after living wage campaign

Picturehouse Cinemas and its parent Cineworld risk provoking outrage with the controversial decision.

by Jack Torrance
Last Updated: 12 Jan 2016

Grab some popcorn, turn off your phone and make sure you’re sitting comfortably. Picturehouse Cinemas has reignited its ongoing industrial relations drama by announcing redundancies at its Ritzy cinema in Brixton just weeks after finally agreeing to increase pay.

Picturehouse began as an independent company, founded to 'challenge the multiplex model', but its chain of 20 cinemas was acquired by the silver screen giant Cineworld in 2012.

Ritzy workers have been campaigning for the chain to pay them the London Living Wage (£8.80 per hour) for more than a year. They went on strike and even got the backing of film directors Ken Loach and Mike Leigh before management gave in in September and agreed to a 26% pay rise over three years.

But on Thursday bosses said they were launching a consultation into redundancies and expected to lose at least 20 of the Ritzy’s 93 staff. Unsurprisingly workers reacted with fury.

‘This is nothing short of a scandalous provocation which is set out to undermine a year’s worth of hard work to gain a bare minimum wage rise,’ a statement on the group’s Facebook page said. ‘[This is] nothing short of pure vindictive retaliation because we the workers showed that with determination and collectivity, we could effect change to make our lives that tiny bit more comfortable.’

Those who vehemently oppose a compulsory living wage will see this move as a clear indication of the effect such rules would have on unemployment in the economy as a whole. Ultimately, if a company can only afford to budget a certain amount for wages then it seems logical that jobs will have to go.

‘During the negotiation process it was discussed that the amount of income available to distribute to staff would not be increasing, and that the consequence of such levels of increase to pay rates would be fewer people with more highly paid jobs,’ Picturehouse said in a particularly frank statement.

But many consumer-oriented companies live or die by their brand. Looking mean can only be bad for the image of a business targeting a young, artsy clientele who could be thinking that a once-independent chain is being swallowed by its corporate parent.

With a fresh batch of strike action potentially on the cards and growing awareness of the campaign (Will Self has now, predictably, joined the scrum) it doesn’t look like Picturehouse will be landing the Oscar for industrial relations any time soon.

Find this article useful?

Get more great articles like this in your inbox every lunchtime

What's the most useful word in a leader’s vocabulary?

It's not ‘why’, says Razor CEO Jamie Hinton.

Lessons in brand strategy: Virgin Radio and The O2

For brands to move with the times, they need to know what makes them timeless,...

Why collaborations fail

Collaboration needn’t be a dirty word.

How redundancies affect culture

There are ways of preventing 'survivor syndrome' derailing your recovery.

What they don't tell you about inclusive leadership

Briefing: Frances Frei was hired to fix Uber’s ‘bro culture’. Here’s her lesson for where...

Should you downsize the office?

Many businesses are preparing for a 'hybrid' workplace.