Princes Group chairman responds to pay dispute amid strike action

Credit: Princes Limited

The Chairman of the Board of Directors at Princes Group, Angelo Mastrolia has today expressed his disappointment with Unite the Union’s approach to an ongoing pay dispute, as strikes are set to disrupt production across the company’s UK manufacturing sites. The industrial action comes after months of unresolved negotiations over pay increases, with union members calling for a higher offer than the proposed three percent.

Mr Mastrolia highlighted the company’s efforts to reach a resolution, including an offer to backdate the pay rise to April 2024. “We have engaged in discussions with the Union for several months, proposing an above-inflation pay rise,” Mastrolia stated. “However, Unite has informed us that they would not permit the company to proceed in this manner.”

The strikes, organised by Unite, will take place across several sites in January, including Bradford, Wisbech, Cardiff, and Long Sutton, as well as engineers in Glasgow. Unite has claimed the action could lead to shortages of tinned goods in supermarkets, a claim Princes denies, asserting that contingency plans and adequate stock levels are in place.

Union pushes for higher pay

Unite members argue that the proposed three percent pay increase falls short of expectations, particularly in light of previous offers made before Princes’ acquisition by Newlat S.P.A in July 2024.

Sharon Graham, General Secretary of Unite, accused the company of failing to prioritise its workers. “Newlat needs 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,” Ms Graham said.

Unite National Officer Paul Travers added that Newlat’s financial strategy is driving the dispute. “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,” he said.

Princes defends pay offer

Princes maintains that its three percent pay offer is fair, given challenging market conditions and rising operational costs. The company points to substantial pay increases in recent years, including eight percent in 2023 and seven percent in 2022, alongside a one-off cost-of-living payment of 4.1 percent in 2022.

“The Board of Directors of Princes and I fully understand our responsibility to care for our colleagues, but we have an equal obligation to ensure the long-term sustainability of Princes,” Mr Mastrolia emphasised.

In their official statement, the company cited the impact of rising employer costs, such as changes to the Living Wage and anticipated increases in Employer National Insurance contributions, as key factors limiting the company’s ability to offer more.

Disruption or continuity?

While Unite has warned of potential supermarket shortages, Princes disputes the severity of the impact. “Contrary to Unite’s recent media claims of significant disruption to the UK’s food supply, Princes confirms that all affected sites have contingency plans in place and maintain adequate stock levels as a standard practice,” the company stated.

Strikes begin

The industrial action is scheduled to roll out in stages, with strikes at various locations between 6 January and 18 January. Princes has thanked non-union employees for maintaining operations and continues to urge Unite to reconsider its position.

Unite remains firm in its stance, calling for an improved pay offer and warning of the potential consequences for both the company and its customers.

Whether the two sides can find common ground remains uncertain as the dispute intensifies.