Saturday, 25 May 2013

Dispute over terms and conditions changes at Carlisle factory could escalate

A row over changes to workers’ terms and conditions at Cavaghan & Gray is threatening to escalate.

2 Sisters Food Group, which recently bought the Carlisle ready meals producer, wants staff to accept new over-time rates, sick pay arrangements, redundancy terms and changes to bank holiday working.

They rejected the proposals in a ballot by two to one.

Workers say the company is threatening to impose more onerous contracts if they do not agree to the changes.

Their union, Usdaw, is organising mass meetings at Harraby Catholic Club on Tuesday and Wednesday to discuss the next steps, which could include a ballot for industrial action.

One of the 800 workers affected spoke to the News & Star.

She said: “I really hope there is support for strike action. We are in a corner, what else can we do?

“There is so much anger about this in the factory.

“If the company was a new business and was struggling, and they had to cut costs, people would understand.

“But Ranjit Boparan [owner of 2 Sisters] paid himself [and his wife] £12m last year yet he’s doing this to us. It’s disgusting.”

There was a strike at another 2 Sisters’ site earlier this month.

Workers at R F Brookes, a pie factory in Leicestershire, claimed that a redundancy package offered to 193 people due to leave in August was less than paid previously.

Meanwhile, Usdaw and 2 Sisters have said they will resume talks over the Cavaghan & Gray proposals.

These involve cuts to sick pay and redundancy payments, lower overtime and bank holiday pay and less paid time off for hospital appointments.

The company also wants to scrap a good attendance bonus and an ill-health termination agreement, streamline the grievance procedure and move weekly-paid staff to monthly salaries.

A spokesman for the firm said the proposals were “focused on ensuring Cavaghan & Gray can remain competitive and sustainable in a tough environment”.

Mr Boparan is ranked joint 101st in The Sunday Times Rich List with a fortune put at £750m.

His other interests include the Harry Ramsden fish and chip shop chain.

Accounts filed by 2 Sisters at Companies House show profits rose by a third in 2009 to nearly £34m with turnover increasing from £500m to £580m.

They also show that Mr Boparan paid himself and his wife a £12m dividend, up from £11m the year before.

The company acquired Cavaghan & Gray as part of a takeover of Northern Foods last year.

SHARE THIS ARTICLE

Vote

What is the biggest obstacle holding your business back from growth?

Lack of funding or cash flow

Recruiting talented and motivated staff

Not having the right technology

The local area/landscape

Meeting the needs of clients

Show Result

Poll results
Hot jobs

New vacancies

FeedWind

BBC News business headlines

FeedWind