Princes boss warns it will cut jobs if union presses ahead with strike in pay dispute

Unite the Union’s “harmful approach” to pay negotiations are putting jobs at risk, warns the chairman of Liverpool-based foods group, Princes.

The two parties are locked in negotiations over a pay dispute, agreeing a three per cent wage rise with GMB union members at Princers’ Erith and Belvedere sites earlier this week.

However, the impasse continues at several of the group’s other UK food and drink manufacturing locations.

The group, which is based in the Royal Liver Building was acquired by Italian-based Newlat Food S.p.A in a £700m deal with previous owner, Mitsubishi, last July,

Princes confirmed earlier in the week that talks with Unite ended in December after both sides acknowledged they had failed to reach an agreement, despite the offer of a three per cent pay increase.

Angelo Mastrolia, Chairman of the board of directors of Princes, 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.”

He added: “The three per cent 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.

“All options to maintain the sustainability and stability of the company must be considered.”

And he warned: “Should Unite confirm the strike schedule for February, Princes will be forced to withdraw the three per cent 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 says it continues to face extremely challenging economic conditions and rising employer costs.

Changes to the Living Wage will add approximately £1,800 per full-time employee in 2024, with further employment cost increases anticipated in the next 12 months, such as the rise in Employer National Insurance contributions.

In addition, the company is facing growing competition and pricing pressures that must be factored into its financial outlook, it said.

Unite the Union says it has undertaken the industrial action because the new owner has refused to honour a pay rise agreed with the previous owner last year.

Unite general secretary, Sharon Graham, said: “If Princes thinks its threats will weaken workers’ resolve it has another thing coming.

“This is appalling behaviour from a shameful company. First it pulled the rug from under our members by reneging on a pay deal and now it is threatening their jobs with these union-busting tactics.

“Unite won’t stand for such tactics and will be backing our members every step of the way in their dispute.”

The union also disputed several claims by Princes, including that the company has been negotiating with Unite for months over the pay claim, that the new offer of three per cent is above inflation and that it claims to be “an employer of choice” in its mission statement. 

Unite national food officer, Paul Travers, said: “The bullying tactics of Princes and its Chairman are disgusting.

“The communities in which it operates and the customers who buy their products should know what sort of company they are – one who goes back on promised pay, spreads lies about their actions and now threatens their jobs by moving overseas.

“Unite and our members won’t tolerate such bullying behaviour and will instead be upping our campaign for a fair day’s pay.”