Ryan FowlerThe chairman of Princes, Angelo Mastrolia, has warned that ongoing strike action by Unite the Union poses a “very real risk” to jobs at the company’s UK food and drink manufacturing sites. Mastrolia criticised Unite’s “unrealistic and unjustified” approach, which he said threatens the long-term sustainability of the business and the livelihoods of its employees.
Princes recently reached an agreement with the GMB union for a 3% pay increase for workers at two of its sites. However, discussions with Unite broke down in December after both sides failed to agree on the same offer.
Mastrolia said: “Unite’s unrealistic and unjustified position is extremely harmful to our company and our colleagues in the UK. As we have reiterated, we fully understand our responsibility to care for our colleagues, but we have an equal obligation to ensure the long-term sustainability of Princes by focusing on cost management and being a competitive supplier for our customers and the end consumer.
“The 3% pay offer is above the current rate of inflation and is fair and reasonable, considering the substantial annual above-inflation pay increases over the past five years. Unite must understand that continuing this strike action could have a hugely detrimental impact on the members it claims to represent, as well as our non-unionised colleagues across the UK.”
Mastrolia added that if Unite confirms a February strike schedule, Princes will be forced to withdraw the 3% offer. The company may also have to transfer parts of its branded production to facilities abroad, which could lead to job reductions at UK sites.
“All options to maintain the sustainability and stability of the company must be considered,” he said. “Should Unite confirm the strike schedule for February, Princes will be forced to withdraw the 3% offer. Furthermore, we will be compelled to transfer part of our branded production to other facilities, including those abroad, and if the strike action continues, this will likely become a necessary choice for the future, which could mean a need to reduce jobs at our UK sites. This is a very real risk, which benefits neither the workers nor the company.”
Princes has previously outlined the economic pressures it faces, including increased employer costs due to changes in the Living Wage, which will add around £1,800 per full-time employee in 2024, and anticipated rises in Employer National Insurance contributions. The company also faces mounting competition and pricing pressures that it says are critical factors in its financial planning.
