Princes warn of ‘very real risk’ to jobs if strikes continue at Long Sutton and Wisbech factories

A food manufacturer says jobs could be reduced at two factories if workers continue to strike over pay.

Chairman of the board of directors for Princes, Angelo Mastrolia, has warned that the firm would withdraw its 3% pay offer if industrial action continues at its Long Sutton and Wisbech factories into February.

He also warned of the ‘very real risk’ to cut jobs as the firm would be ‘compelled’ to move production of its brands to other sites - including those abroad.

Members of Unite the Union formed picket lines outside the two factories in January to show their their discontent over the firm’s decision not to honour a pay award previously offered of 4% – instead reducing it to 3%.

Talks between the two sides broke down in December.

Mr 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.”

He went onto say the 3% offer was ‘fair and reasonable’ and was above the rate of inflation.

Mr Matrolia added: “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.

“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 stated that it continues to face ‘extremely challenging economic conditions and rising employer costs’. It says that changes to the Living wage will add approximately £1,800 per full-time employee and anticipates further increases from the rise in Employer National Insurance contributions.

Unite’s members at Princes Foods had been offered between a 4% and 7% pay rise dependent on salary by the previous owner, Mitsubishi.

The company was subsequently bought by Newlat which withdrew that offer and has been offering a 3% pay rise.

Princes says it has reached an agreement for 3% with GMB members at other sites.