Food and drink group Princes is to give employees a 3% pay increase following several months of negotiations with unions.
The group reached a mutual agreement with trade union GMB for its members across several of its UK sites. Members based at the Erith and Belvedere sites will receive the pay award, backdated to April 2024.
According to Princes, the agreement demonstrates its ongoing commitment to providing fair and reasonable remuneration for its employees, despite challenging economic conditions in the UK and Europe.
The employer has also been negotiating about pay rates with trade union Unite for several months and has offered a 3% pay increase. It additionally offered to back date the 3% pay rise for 2024 to its employees while the dispute continues but Unite refused. As a result, a failure to agree has been registered and talks have ceased.
Over the past five years, Princes awarded an 8% pay increase in 2023, 7% in 2022, and 2.5% in 2021, along with a one-off cost of living payment of 4.1% in 2022.
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. I am grateful to GMB union for its constructive approach to the negotiations and its 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.
“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. The Princes board have to constantly balance operational costs, including wages, while staying competitive and being able to offer favourable conditions for staff, evidenced by the agreement with GMB.”