Forever 21 Downgrades Status Of Some Full-Time Employees

Forever 21 Downgrades Status Of Some Full-Time Employees

A memo leaked from Forever 21 indicated that a number of full-time employees of the company were downgraded to part-time status. This resulted to the withdrawal of some benefits from these employees.

The retailer, which is supposedly worth around $3 billion, was also named as transformative retail concept following an increase in sales in the US market. However, the recent move has left a number of full-time employees uncertain of their status. An unhappy employee reportedly leaked the memo, which took effect last August 18 while the withdrawal of benefits will be effective on August 31.

Affected employees will not be given paid time off in the form of personal days and vacations. A number of labor activists have indicated that the move of Forever 21 was in response to Obamacare.

The memo was signed by the Human Resources associate director of the company, Carla Macias. The changes were made following an audit of the staffing levels of the company, including finances and staffing needs. Obamacare was not the reason for the changes, according to a spokesperson of the company.

The spokesperson indicated that less than one percent of all employees in the US were affected by the status downgrade. This indicates that around 300 of the 30,000 employees in the company will be affected. The company did not give any indications that some managerial positions will be affected by the changes.

A number of employers have indicated that they will reduce full-time positions as many have started to hire part-timers or temps. However, some analysts have indicated that the changes in these companies were linked to the global economy instead of the changes brought in by Obamacare.

A number of Forever 21 customers have shown what they felt about the changes through social media. Some negative comments were posted on the Facebook page of the company while some customers have indicated that they will stop patronizing the products of Forever 21.

Posted by James Fried on Wednesday August 21 2013, 8:38 AM EST. Ref: Inquisitr. Link. All trademarks acknowledged. Filed under Featured News, Finance. Comments and Trackbacks closed. Follow responses: RSS 2.0