Princes, a leading global food producer, has announced a significant development in its labor relations. The company has successfully reached a mutual pay agreement with the GMB Union, resulting in a 3% pay increase for its members across various sites in the UK.
This agreement marks a resolution after months of intense negotiations. Princes emphasizes that this step reflects its “ongoing commitment to providing fair and reasonable remuneration for its employees, despite the challenging economic conditions currently prevailing in the UK and Europe.” By investing in its workforce, Princes aims to navigate the current economic landscape while maintaining employee satisfaction.
Specifically, GMB members at the Erith and Belvedere facilities will benefit from this 3% pay award, which will be backdated to April 2024. This financial adjustment is a key aspect of Princes’ commitment to its employees, ensuring that they receive appropriate compensation for their contributions.
Angelo Mastrolia, the chairman of Princes, shared his perspective on the agreement: “We see this agreement as a positive step towards maintaining the long-term stability of the business while continuing to support our employees. 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 comments underscore the importance of collaboration between management and labor to achieve mutually beneficial outcomes.
Moreover, Princes is also engaged in pay negotiations with the Unite Union. The company has proposed an above-inflation 3% pay increase, which builds on previous raises over the last five years. Notably, employees received an 8% increase in 2023, a 7% increase in 2022, and a 2.5% increase in 2021. Additionally, a one-off cost of living payment of 4.1% was granted in 2022. This consistent pattern of pay increases demonstrates Princes’ dedication to employee compensation that exceeds inflationary rates.
Despite these efforts, the Unite Union has opted to decline the offer of back pay for the 3% pay raise scheduled for 2024, leading to a stalemate in negotiations and the subsequent registration of a failure to agree. Consequently, discussions between Princes and Unite have come to a halt.
In light of the ongoing situation with Unite, Princes has taken steps to reassure its customers by stating that while the industrial action is deemed “disruptive to sites,” there is currently no risk of product shortages. All affected locations have developed contingency plans to ensure operational continuity and service reliability.
Mastrolia further elaborated on the broader implications of the current negotiations: “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.” This highlights the necessity for strategic planning in a competitive environment, where productivity and cost management are crucial.
He concluded by stating, “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.” This remark encapsulates the delicate equilibrium that companies must maintain between supporting their workforce and ensuring their business remains viable in the marketplace.
