Coronavirus UK: Stella McCartney puts staff on leave, cuts wages

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Fashion designer Stella McCartney has laid off hundreds of her employees and asked those who remain to work to take a pay cut during the coronavirus crisis.

McCartney will use taxpayer money offered as part of the government’s job retention program to pay wages, along the lines of Victoria Beckham, who has been criticized for putting people on leave despite her fortune of 335 millions of pounds.

One employee said staff were “extremely injured” by the decision by McCartney, who has an estimated personal fortune of more than £ 60 million.

“What she did is morally reprehensible and socially unacceptable,” said one of the workers on leave.

Fashion designer Stella McCartney (above, last October) put hundreds of her employees on leave and asked those who remain at work to take a pay cut during the coronavirus crisis. Owner of favorite Hollywood celebrity brand to use taxpayer money from government retention program to pay the wages of those who don't work

Fashion designer Stella McCartney (above, last October) put hundreds of her employees on leave and asked those who remain at work to take a pay cut during the coronavirus crisis. Owner of favorite Hollywood celebrity brand to use taxpayer money from government retention program to pay wages for those who don’t work

Unlike Victoria Beckham, who put 30 workers on leave, McCartney, 48, told staff that there are no plans to supplement their wages with an improved package. Staff working at McCartney's two flagship stores in London have received letters informing them of the company's decision. (Above, the McCartney store in Mayfair)

Unlike Victoria Beckham, who put 30 workers on leave, McCartney, 48, told staff that there are no plans to supplement their wages with an improved package. Staff working at McCartney’s two flagship stores in London have received letters informing them of the company’s decision. (Above, the McCartney store in Mayfair)

An insider told MailOnline that almost half of the 1,400 employees in 51 stores worldwide are on leave. (In the photo, the designer store in Old Bond Street)

An insider told MailOnline that almost half of the 1,400 employees in 51 stores worldwide are on leave. (In the photo, the designer store in Old Bond Street)

Former Beatle Paul's daughter Stella McCartney is now one of the most recognized fashion names with her favorite celebrity designs. She is seen above, on the right, with her father and sister Mary

Former Beatle Paul’s daughter Stella McCartney is now one of the most recognized names in fashion with her favorite celebrity designs. She is seen above, on the right, with her father and sister Mary

“We all expected a lot more from Stella, but she showed no loyalty. She’s proud of her social credentials, but we’ve just been dumped. ‘

Unlike Victoria Beckham, who put 30 workers on leave, McCartney, 48, told staff that there are no plans to supplement their wages with an improved package.

Under Chancellor Rishi Sunak’s rescue plan, companies can claim up to 80% of wages up to a maximum of £ 2,500.

Meghan Markle wore one of Stella McCartney’s £ 1,500 coats on Remembrance Sunday and had her dress designed for her wedding reception (photo) in May 2018

Meghan Markle wore one of Stella McCartney’s £ 1,500 coats on Remembrance Sunday and had her dress designed for her wedding reception (photo) in May 2018

Stores in cities like New York, Los Angeles and Las Vegas have also been forced to close due to lockdowns imposed on non-essential stores in an attempt to stop the spread of Covid-19. (Above, one of the Stella stores in Manhattan)

Stores in cities like New York, Los Angeles and Las Vegas have also been forced to close due to lockdowns imposed on non-essential stores in an attempt to stop the spread of Covid-19. (Above, one of the Stella stores in Manhattan)

Beckham plans to compensate the 20 percent for those assigned to the government’s employment program.

But she has always been strongly criticized for asking the government to pay the remaining 80% of her salary, when her collection of handbags alone would represent £ 1.5 million.

Her fashion brand charges £ 1,500 for a dress and Mrs. Beckham recently bought a £ 17 million penthouse in Miami with her husband David. The couple also paid £ 100.00 for their elder son Brooklyn’s 21st birthday celebrations.

But she said the 30 marketing, customer service and people working in her Mayfair store will be on leave for two months “so far.”

Stella stores around the world

Stella McCartney operates 51 independent stores (with 1,400 employees) in locations including:

  • Manhattan Soho
  • Mayfair and Brompton Cross in London
  • West Hollywood Los Angeles
  • Royal Palace of Paris
  • Milan
  • Tokyo
  • Shanghai
  • Beijing

Its collections are distributed in 77 countries through 863 doors, including specialty stores and department stores, as well as shipping to 100 countries online.

Source: stellamccartney.com

Meanwhile, staff working at McCartney’s two flagship stores in London have received letters informing them of the company’s decision.

An insider told MailOnline that almost half of the 1,400 employees in 51 stores worldwide are on leave.

Stores in cities like New York, Los Angeles and Las Vegas have also been forced to close due to lockdowns imposed on non-essential stores in an attempt to stop the spread of Covid-19.

The Stella McCartney brand website presents the slogan: “We are all in the same boat” and shows two models pulling one of his expensive handbags.

In addition to London stores, McCartney sportswear, apparel and accessories are sold to Harrods and Harvey Nichols.

They have all been forced to close since Boris Johnson announced the lockout.

Former Beatle Paul’s daughter McCartney is now one of the most recognized names in fashion with her favorite celebrity designs.

Meghan Markle wore one of her 1,500 coats on Remembrance Sunday and had her dress designed for her wedding reception.

Victoria Beckham found 30 employees in her struggling fashion brand - despite an astounding family fortune estimated at £ 330 million. Pictured with husband David and daughter Harper

Victoria Beckham found 30 employees in her struggling fashion brand – despite an astounding family fortune estimated at £ 330 million. Pictured with husband David and daughter Harper

Beckham is supposed to raise her wages in an

Beckham is expected to raise her wages in an “improved package” by paying the remaining 20% ​​- although she is not required to do so. Victoria Beckham store, Hong Kong

What is “leave”? The grant program with a price of 40 billion pounds sterling

Prior to the lockdown, the word “leave” was obscure and rarely used in the UK.

But as Britain’s coronavirus crisis worsens, it becomes part of everyday language for families concerned about their financial future.

He is referring to an unprecedented program announced by Chancellor Rishi Sunak last month to protect jobs as the economy is devastated by the impact of the coronavirus.

Under the scheme, the state will cover up to 80 percent of workers’ wages in March, April and May if companies keep them on the payroll instead of laying them off.

Payments are capped at a maximum of £ 2,500 per month. More than nine million workers are expected to be on leave, or indeed on taxpayer-funded leave.

Employers pay their employees, but collect the subsidy from HM Revenue and Customs at the end of this month.

Last week, Sunak announced that the wage subsidy would be available until the end of June, adding that he would extend it again if necessary.

However, the extraordinary diet comes with an uplifting price tag.

According to the Resolution Foundation think tank, it will cost taxpayers £ 40 billion for every three months of operation.

The Stella McCartney brand has annual sales of over £ 500 million and is the only business owner to acquire a partner two years ago.

The designer, who is married and has four children, is likely to face a violent reaction to her decision to seek taxpayer money for her staff.

A spokesperson for Stella McCartney told MailOnline that not all staff have been put on leave. They declined to comment on the staff salary cuts.

TV presenter Piers Morgan led Victoria Beckham’s sentence, calling it “prima donna pampered.”

He asked why she could receive taxpayer money to pay her staff after Culture Secretary Oliver Dowden said companies should only use the taxpayer funded plan “if they should”.

Speaking at Good Morning Britain, he said, “I think every person and every business should ask themselves: should they rely on the taxpayer?

“Because this scheme is intended to be used if you are about to fire someone and you do not have the money to continue to employ them, then you can count on the government to prevent the dismissed people “

Mrs. Beckham’s business, based in Hammersmith, west London, has made no profit since its launch in 2008.

In 2018, it suffered losses of £ 12.3 million.

The previous year, Ms. Beckham lost £ 10.3 million, but the business was supported by her ex-footballer.

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