Princes Group reaches pay agreement amid ongoing labour disputes

Credit: Princes Limited

Princes Group has announced a three percent pay increase for GMB Union members across several UK sites, marking progress after months of negotiations. The agreement, which is backdated to April 2024, applies to employees at the Erith and Belvedere facilities.

Angelo Mastrolia, Chairman of Princes said, “We see this agreement as a positive step towards maintaining the long-term stability of the business while continuing to support our employees.

He added, “I am grateful to the GMB Union for their constructive approach to the negotiations and their understanding of the wider economic challenges faced by the business. We remain committed to resolving the remaining disputes at other locations as soon as possible.”

Negotiations with Unite remain unresolved

Princes has recently faced mounting pressure as industrial action disrupts operations at several sites. While the agreement with GMB is a milestone, negotiations with Unite remain unresolved.

Despite Princes’ offer of a three percent pay rise, backdated to 2024, alongside a history of above-inflation increases over recent years, talks with Unite have broken down. Both parties have declared a failure to agree, halting further discussions.

The company highlighted its efforts to navigate a challenging landscape, citing the need to balance employee remuneration with the pressures of a highly competitive market.

“We operate in a highly competitive market. In addition to a highly demanding customer base, we increasingly have overseas competitors seeking to take business outside of the UK food and drink manufacturing sector,” Mastrolia remarked.

“The Princes board have to constantly balance operational costs – including wages – while staying competitive and being able to offer favourable conditions for colleagues evidenced by the agreement with GMB.”

Despite ongoing strikes, Princes reassured customers that robust contingency plans are in place to prevent supply chain disruptions. The company remains focused on maintaining product availability and preserving its market position.

As the industrial action continues to cast uncertainty over its operations, Princes has reiterated its commitment to open dialogue and resolving disputes.

Mastrolia warned that the industrial action the company is currently experiencing with Unite does “nothing but put our sites and jobs at risk.”