The merger of Thomas Cook and MyTravel could be the saviour of high-street travel retail, according to trade union the Transport Salaried Staffs’ Association.
Senior regional organiser Rick Justham said he could see “a lot of benefits” in the merger, which was approved by the European Commission last Friday as first revealed on this website last week.
“This could be something that secures the future of high-street travel agencies in the long term. I’m hoping the combined company will pack a bigger punch,” he said.
The TSSA believes the merger could eventually produce investment in high-street agencies, although initially it is likely to increase the pace of closures of poorly performing shops.
While Justham accepted that some job losses were “inevitable” he said the union would be consulting with the company over the next three to four months to save as many as possible.
“Given the turnover of staff in the industry, hopefully losses can be managed by natural wastage,” he said.
Consultation with the thousands of staff whose jobs are under threat will not start until after June 19, following the formality of a court hearing to create the new company and after MyTravel shareholders give it the green light on May 29.
By law, all staff in danger of losing their job must be informed in writing before a one or three-month formal consultation with elected representatives – depending on the number of people involved.
Justham played down speculation that all staff in the merged group will be asked to reapply for their own jobs: “Nobody’s talked about that, no decisions have been made.”
Recruitment firms are expecting an initial flood of job seekers as a result of the merger, and that of First Choice with TUI.
C&M Recruitment managing director Angus Chisholm said: “The mergers had to happen at some point or the big
four would have been left behind.
When people know what is going to happen it may become volatile but it will quieten down.”