Nestlé staff back ballot on industrial action over pay

8:57am Friday 26th February 2010

By Mike Laycock

HUNDREDS of workers at Nestlé’s York factory have voted overwhelmingly for a ballot on industrial action over pay.

Members of the GMB and Unite unions voted 504-36 in a “straw poll” in favour of a ballot to determine whether they would support industrial action, initially short of a strike.

John Kirk, who jointly represents both unions in pay negotiations, today launched a scathing attack on the company in the wake of the vote.

He claimed Nestlé was using the recession to impose a pay freeze for 2010, at a time when the factory was more productive than ever before and inflation had risen above three per cent.

He claimed York had record output in January and profitability was just below the company-wide average of 12 per cent, and the factory did so well last year that managers received “fat cat” bonuses of 12 per cent or more. Mr Kirk said: “We believe there is a ‘hidden agenda’ to replace traditional pay bargaining with individual performance-related pay.”

He said the union was prepared to accept pay freezes in 2007 and 2008 because it accepted it was needed then to secure the factory’s future, but did not believe this was so any more.

He said he did not want industrial action. “All we are asking for is fair pay.” He would meet the company again on March 4.

Nestlé said today its “engaged and positive” workers had helped it achieve a good year in tough times and they would share in the success of 2009. A spokesman said: “In March, our confectioners will receive, via the bonus scheme, a payout of 3.25 per cent, more than treble the amount paid last year.” He said 2010 was set to be even tougher and more unpredictable, with the additional challenge of record prices for raw materials such as cocoa.

“In the current climate, it would be irresponsible to increase costs we control including wages and salaries,” he said However, the factory bonus scheme had been improved. “In 2010, we’ll offer our confectioners the chance to earn a higher bonus than in previous years if the business achieves its targets. The maximum bonus payable will increase to 6.6 per cent from four per cent.”

He added the company was confident of attracting and retaining the best people, with terms and conditions significantly ahead of comparable employers in the York area.