Millions dividends Tempe Inditex - The company is growing hand in hand with Inditex, and vice versa, which is reflected in a remarkable evolution in the two companies that make up Tempe.

Its latest annual accounts show that the company generated revenues of just over 1,300 million euros in 2021, representing a 30% year-on-year recovery, despite remaining one hundred million below the pre-pandemic level.

Precisely, to try to mitigate the effect of the health crisis, it provided an inventory provision of twenty-one million euros due to its impact on the spring /summer 2020 campaign, in line with the 287 million that Inditex provided for the same reason.

With all this, Tempe closed its fiscal year - ended on January 31, 2022-, with a profit of 119 million, which is almost double that recorded in 2020, with sixty-two million.

Some results accompanied by the proven recovery of its main client and partner.

Millions dividends Tempe Inditex

Tempe allocated fifty million to give back to its shareholders. Half of this dividend, twenty-five million, went to Inditex.

Before the pandemic, in 2018, the Galician giant received up to sixty million.

However, a "hierarchical and inflexible" structure contrasts with these figures, according to several Tempe workers on condition of anonymity.

"The company's own hierarchical system limits the worker," says one employee.

A current worker in the distribution area supports this idea: "There is a sense of hierarchy because there are many positions of responsibility, but few technicians; that is, a very pointed pyramid".

To understand how Tempe's senior management is organized, apart from the CEO himself, two directions must be mentioned: one focused on the structure and the other on product.

Within the first division there are four directors each in charge of covering the main operational wings of the company: Human Resources, Manufacturing, Logistics and Distribution.

Millions dividends Tempe Inditex structure

Next to the previous structure, another one coexists, the one focused on the Inditex signs to which Tempe provides product.

In this way, there would be a boss for each firm: from Massimo Dutti to Oysho. The only brand that skips this structure is, due to its magnitude, Zara. The star firm of Inditex has a director - in addition to the general - for each section: Madam, Trafaluc, Basic, Gentleman and Child.

These voices maintain that no matter what team you join, once you are in it, it is "very complicated" to move and grow in other areas of the business.

"I came with 7 years of experience and there has always been the feeling that we were unlearning," explains another worker linked to the group for 3 years. "After 6 years in Tempe, I felt that I was not advancing professionally," agrees another colleague.

At this point, the workers point to this structure as responsible for the widespread disenchantment: "People with a very high position have been there all their lives, but they are people trained in the key of 20 years ago and not trained for the current pace, far from digital".

A current employee also agrees on this: "While all the companies in our environment are evolving, Tempe is still anchored in the twentieth century."

An idea that sources close to the core of Zara confirm: "The Tempe strategy is stagnant and has no reaction capacity to, for example, certain eventualities that may break a campaign".

Millions dividends Tempe Inditex statement

"They make a plan for 8-12 months and follow it, even if a war like the one in Ukraine erupts, without going any further, which forces you yes or yes to redefine the plan," they point out.

To this previous problem is added an unequal synergy with the headquarters of Inditex, in Galicia.

"We never had any contact in a fluid way. There was never a widespread common work, despite providing a key product," they explain. "We've always felt out of the group."

The current employee gives the key: "There is rapport between all brands and their respective headquarters, with the exception of Zara".

Regarding the relationship with Inditex's flagship brand, he acknowledges that in recent months an effort has been made to achieve a more fluid relationship: "The intention is that Tempe be taken as one more part of the business and not as an alien company".

From the other side, the feeling is the same. Sources close to Arteixo explain that Tempe has always been unaware of how the group works: "There is hardly a relationship with them when they should be one more department."

Thus, Tempe makes a product that should be integrated into the textile, but they are not made participants in the process: "They are not in the monitoring of trends; of design or inspiration. In general, from Zara's day to day".

Millions dividends Tempe Inditex predictions

However, the prediction within the Tempe workforce is that a total integration will become a reality at the end of this year. Before, despite attempts, it was never possible.

Part of this heroic effort is evidenced in the footwear showroom that can be seen in the newly opened Zara in Plaza España, in Madrid, the most avant-garde store of the entire group.

The entire previous situation has culminated, they maintain from the Tempe staff, in a "systematic flight of workers".

The latest accounts deposited with the Mercantile Registry reveal that, at the end of 2020, the labour force amounted to 1,906 people — 1,556 were permanent workers and 350 temporary-.

That is 254 fewer workers than in 2019. The bulk of the departures falls on the fixed staff, with 205 departures.

According to a worker in the design area, "only in the last 2 years fourteen people out of a team of thirty-one have left. From what was my working group, there is practically no one left."

"It is clear that something is happening, but from Human Resources they do nothing," they point out.

A feeling that is also shared by the store staff that operates Tempe under the For & From model — a program for the socio-labour integration of people with physical or intellectual disabilities.

Fátima López is a shop assistant at one of these establishments in La Coruña: "Whenever I communicate any breach of workers' rights, they either don't respond to me or, directly, they tell me to take them to trial if we want."

López, who has been the only union representative in a Tempe store for 4 years, points out that only in 5 years and with a staff of fifteen workers have several lawsuits won for non-compliance with several points of the Workers' Statute.

However, there is no reply at the Tempe headquarters and the works council: "It's as if there were no, no one receives news of our progress — or delays - in labour matters."

# Millions dividends Tempe Inditex #