Food giant Princes says it has settled a pay dispute with GMB Union but negotiations with Unite the Union – whose members have staged strikes at Wisbech and Long Sutton – have ceased.
“Princes is pleased to announce that it has reached a mutual agreement with the GMB Union for a 3% pay increase for members across a number of its UK sites,” said a company spokesperson.
“Pay negotiation talks with Unite the Union, relating to staff across a number of other UK sites, have ceased.”
Angelo Mastrolia, chair of Princes, said: “We operate in a highly competitive market. In addition to a highly demanding customer base, we increasingly have overseas competitors seeking to take business outside of the UK food and drink manufacturing sector.
“The Princes board have to constantly balance operational costs – including wages – while staying competitive and being able to offer favourable conditions for colleagues evidenced by the agreement with GMB.
“Industrial action as we are currently experiencing with Unite does nothing but put our sites and jobs at risk.”
Mr Mastrolia added: “I am grateful to the GMB Union for their constructive approach to the negotiations and their understanding of the wider economic challenges faced by the business. We remain committed to resolving the remaining disputes at other locations as soon as possible.”
His spokesperson said Princes has also been engaged in pay negotiations with Unite for several months, offering an above-inflation 3% pay increase.
“This follows pay increases over the past five years: 8% in 2023, 7% in 2022, and 2.5% in 2021, along with a one-off cost of living payment of 4.1% in 2022,” said the spokesperson.
“All these were above inflation. Princes has also offered to back pay the 3% pay raise for 2024 to its employees whilst the dispute continues, which Unite has refused. As a result, both parties have registered a failure to agree and therefore talks have ceased.
“While ongoing Unite action is disruptive to sites, Princes reassures their customers and consumers there is no risk to shortages of its products and that all affected sites have contingency plans in place.”
“Industrial action as we are currently experiencing with Unite does nothing but put our sites and jobs at risk.”
Princes Foods make dozens of household name products, such as Branston and Crosse & Blackwell, as well as their own brand tins and jars of meat and fish.
“The strikes are likely to lead to shortages in supermarkets and shops across the country,” said a Unite spokesperson.
“Unite members are taking industrial action after having seen previous pay offers revoked by new owners.
“Unite’s members, who work as line operatives and engineers, had been offered between a four and seven per cent pay rise dependent on salary by the previous owner, Mitsubishi.
“The company was subsequently bought by Italian based multinational Newlat S.P.A, which withdrew that offer. Instead, it is offering just a three per cent pay rise.
Unite general secretary Sharon Graham said: “Newlat need to get back round the negotiating table before its customers discover they won’t have any products on their shelves. Our members work in back-breaking roles on low pay and want a fair slice of the pie.
“Newlat make 20 per cent of all their revenues in the UK and are making money off the backs of these workers. Yet they want to shortchange our members. Unite won’t stand for such behaviour and back our members 100 per cent.”
In its latest half year financial reports, the Newlat Group expects to achieve sales of 2.8 billion euros during this financial year with profits of approximately 188 million euros.
Unite national officer for food, drink and agriculture, Paul Travers, said: “Newlat borrowed huge sums of money to buy Princes and is now looking to cut corners and penny pinch to pay that money back. Unite won’t let them do so with our members’ livelihoods.
“Newlat can avoid this strike, which is one of their own making, by coming back to the negotiating table with a new and improved pay deal for our members.”
