Manufacturer hits back in pay row with union

A Birmingham manufacturer of parts for major UK carmakers has hit back at union claim that workers there are “at the end of their tether” over alleged low pay.

Union Unite says that the supply chains of Ford, Peugeot and JLR could be hit in a dispute over pay at Darcast Crankshafts.

The union claims that the entire shop floor workforce at the company, which made profits of more than £2 million in 2018/19, will be balloted for strike action this week over low pay.

Unite, which has more than 70 members at the factory, said workers are being paid a basic rate of £6.16 an hour that is topped up to the legal minimum through the use of shift allowances and bonuses it claims are “bogus”.

The union claims that although staff “on occasion” have to work up to 70-hour weeks in “arduous” conditions at the factory’s metal foundry, Darcast has refused the workers’ request to increase their basic hourly rate to the national minimum wage (NMW) of £8.21.

Unite has slammed Darcast’s use of “bogus bonuses” which, it says, give the impression it is possible for staff to earn a “reasonable living” on their current pay scheme.

The union also criticised an alleged threat by Darcast owner Leonard Bransby to close the factory permanently if the workers do not back down.

Unite regional officer Melvyn Palmer said: “Our members are at the end of their tether – they work in heavy industry and are being paid poverty wages. Their work/life balance is being severely affected with many having to work 60 or 70 hour weeks in gruelling conditions just to get by.

“Darcast’s bogus bonuses are simply an underhand way of keeping staff working long hours and ensuring the firm complies with the NMW. Our members are dead set on righting this wrong and gaining a fair pay rise and are unconcerned about Leonard Bransby’s preposterous threat to close the entire operation if they don’t give in.

“Ford, Peugeot and JLR will not be pleased to hear of a potential disruption to their supply chains because Darcast is paying poverty wages. Darcast know how hard the employees’ jobs are and it is time the company stopped treating workers with such disdain and disrespect. Unite’s door is always open and we urge Darcast to table a pay increase and put an end to this dispute.”

However, in a strongly-worked statement, a Darcast spokesperson refuted the union’s claim.

He said: “Firstly, nobody here is working 60-70 hours a week. We are presently working at around 50% of our production capacity on account of contracts with Ford coming to an end, which were our main source of volume.

“In the run up to Christmas we were laid off for seven weeks due to lack of work and our production department has worked a basic (0600hrs-1400hrs) week for well over twelve months with a 10am finish on Friday.

“Our workers are amongst the highest paid in the foundry sector and the current pay structure to which Mr Palmer refers was the result of a collective bargaining agreement with the Union.

“Our energy bill has increased over 40% in the last 12 months and automotive companies expect year on year price reductions on our product. Notwithstanding this the company has made an offer of a pay rise in line with inflation – covering all pay components – that we can ill afford.

“Last week we lodged a complaint with Unite the Union and the TUC regarding the apparent unwillingness of Unite the Union to continue negotiations, whilst Unite suggest that their door is open to negotiation the facts are somewhat different.

“In October 2019 the company wrote to Mr Palmer suggesting that talks should continue and regrettably that correspondence was ignored. Accordingly, in December the company again wrote to Mr Palmer asking why Unite had failed to respond top our earlier communication. We were told that there was no need for talks because Unite were seeking a ballot for strike action. This appears to be a return to old style trade unionism, which we thought was long since recognised as being dysfunctional.”