2 minute read - 7th January 2025
Princes owner responds amid ongoing pay dispute
In response to the ongoing pay dispute with Unite the Union across its UK manufacturing sites, the chairman of Princes has called for a positive resolution that supports its employees and ensures the long-term stability of the business.
Princes believes that its latest offer of a 3% pay increase, with an offer to backdate this to April 2024, is “fair and reasonable”, following substantial increments granted in previous years, despite the “extremely challenging market conditions” currently prevailing in the UK and Europe.
The company defended its pay offer, highlighting a history of above-inflation pay increases, and cited significant economic challenges that limit its ability to offer further raises. Princes acknowledged the current economic climate but emphasised its commitment to fair compensation, pointing to substantial pay increases in recent years: 8% in 2023, 7% in 2022, and 2.5% in 2021, along with a one-off cost of living payment of 4.1% in 2022. The company argues that its current offer exceeds the current rate of inflation.
Amid the pay dispute and strike action, Princes stated that only 45% of its workforce are union members. In a statement, the company added: “At this time, a higher pay offer is not feasible without jeopardising price competitiveness for our customers and the long-term success of the company. This could pressure production volumes and jobs at the very sites where Unite is causing disruptions.”
Princes has issued a statement defending its pay offer amid ongoing efforts to settle a pay dispute with Unite / Picture: Princes
Princes stressed the increasing economic pressures it faces, including rising employer costs such as the upcoming changes to the National Living Wage, and anticipated increases in employer National Insurance contributions in 2025. The company also cited growing competition and pricing pressures within the industry.
Angelo Mastrolia, chairman of the board of directors at Princes, said: “It has become increasingly clear that resolving this dispute with Unite is becoming more difficult. We have engaged in discussions with the Union for several months, proposing an above-inflation pay rise and offering to backdate this to April 2024 during the negotiations.
“However, Unite has informed us that they would not permit the company to proceed in this manner. 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 by focusing on cost management and being a competitive supplier in the UK’s food and beverage sector.”
Princes expressed disappointment at Unite’s “lack of willingness to understand these pressures,” which has led to a breakdown in potential conciliation talks via ACAS (Advisory, Conciliation and Arbitration Service).
Addressing Unite’s claims of significant disruption to the UK’s food supply, Princes reassured consumers that contingency plans are in place at all affected sites, and adequate stock levels are maintained as standard practice. The company confirmed that daily communication with customers regarding availability, production, and transportation continues without significant impact on product availability.
