Zarah ChoudharyMembers of Unite will strike at the Austrian ski resort of KitzSki in Kitzbuhel to highlight what it referred to as poverty pay rates at food producer Bakkavor.
Hundreds of Unite members employed at the company’s factory in Spalding, Lincolnshire, England have been on strike since September.
The workers have seen their pay fall by 10.6% over the last three years according to Unite.
When the international campaign was originally launched last year, however, Bakkavor noted that it had put forward an improved pay offer of 7.8% to its lowest paid colleagues, and 6.4% across all other grades.
The workers are seeking a pay increase of 81p an hour which is the equivalent to 2% of Bakkavor’s profits.
The KitzSki ski resort is 32% owned by LongRange Capital, which is also a major shareholder in Bakkavor.
The Mayor of KitizSki, Dr Winkler, also has shares in KitzSki.
Unite called on Dr Winkler and the Kitzbuhel Municipality to contact its partner Long Range Capital to ensure fair pay for Bakkavor staff, and for senior management to rejoin the bargaining table
Sharon Graham, general secretary at Unite, said: “Bakkavor is an incredibly profitable company and has paid out millions to LongRange Capital and its other shareholders.
“This is a company that is fully able to provide its workers with a fair pay rise but is cynically choosing not to.
“LongRange Capital needs to ensure that Bakkavor’s management gets round the negotiating table with a decent pay offer for our members.
“Until that happens there will be no hiding place for the company nor its stakeholders.”
The union asked that everyone attending the event send an email to Dr Winkler asking him to take action and apply pressure to LongRange Capital.
Unite will have organisers and digital ad walkers in KitizSki during the ski festival, promoting its message.
Bakkavor made £94m in profit last year, and in the last five years it has paid out £158mn to shareholders.
Unite noted that most workers at the Spalding factory are paid 10p an hour above the UK minimum wage.
The workers at Spalding produce wraps, soups, salads and dips which are sold in major UK supermarkets including Tesco, M&S and Sainsbury’s.
The KitzSki protests follow similar actions that Unite held in Iceland last year which also targeted major shareholders in Bakkavor.
Donna-Maria Lee, chief people officer at Bakkavor, said: “It is now clear to us that it is becoming increasingly difficult to resolve this dispute with Unite and get people back to work anytime soon.
“We have engaged the Union in discussions since the start, and our CEO met with them recently out of a genuine desire to resolve the issue.
“Whilst a material discretionary bonus (of £350 per person) and an above inflation pay rise have been tabled for Spalding colleagues, the Union has now advised us that they have put it to ballot, with a recommendation to reject our offer.
“Coupled with this, working colleagues have reported being made to feel uncomfortable by the strikers, and the Union has set out on what it describes as “an international campaign” to directly lobby our stakeholders – when the real task for them is to settle a dispute in Spalding.
“It takes both parties to engage and whilst we have sought to resolve the issue, I met with the Union this week and it is clear that Unite has little interest in moving forward with the situation at Spalding and is intent on lobbying, publicity and politics, rather than solving a strike that they called for.”
Mike Edwards CEO at Bakkavor, added: “In the Autumn Budget[…]the Government set out the twin aim of supporting workers and creating economic growth.
“We support both of these things at Bakkavor and in truth they cannot actually be separated. Our colleague pay and benefits are well above the minimum wage and ahead of inflation.
“The fact that our company’s ‘Long Service Awards’ have celebrated more than 4,000 colleagues for milestones between 5- and 35-year periods of service over the last two years shows that people choose to stay at Bakkavor and for a length of time, which would be viewed as remarkable in many industry sectors today.
“Coupled with looking after our people, which we do, we have an obligation to be a sustainable business.
“Our pay deals need to be fair to colleagues across all our 21 sites.
“We believe the offer proposed is entirely fair based on the context in which we are operating.
“The Union has a right to campaign, but our responsibility as a business – to our colleagues, customers, shareholders and to the communities in which we are a major employer – is to be sustainable, and fair, for the long term.
“We have been through a global pandemic and a seismic cost-of-living crisis and managing our business well ensures we will continue to create growth – growth for the economy, job creation and training opportunities for young people across the UK.
“Our offer of a pay rise and bonus to Spalding colleagues has now gone to a union ballot and Unite are recommending their members reject it.
“If this happens, we will be at an impasse (a ‘failure to agree’) and we will work to find a way to offer the increases to rates of pay and the bonus to all colleagues at Spalding on an individual basis.
“If accepted by individuals, this will see new rates implemented, back pay processed and bonus paid before Christmas which is what the majority of our Spalding colleagues want.”
