A West Lothian biscuit company is “fuelling financial uncertainty for workers” enduring the cost-of-living crisis by changing how they are paid, according to a trade union.
GMB Scotland says the proposal by Fox’s Burton’s Companies (FBC) – which owns Paterson Arran in Livingston – to pay workers monthly instead of weekly is a needless change that will leave many struggling to make ends meet.
FBC was taken over by a company related to Ferrero.
It said the change is to align with industry standards, but GMB organiser Benny Rankin says it is threatening to cause financial pain for workers forced to readjust to financial arrangements at a time of great economic uncertainty.
He said: “Our members are anxious about this change and how they will bridge the gap between pay days. The prospect of being forced into punitive pay day loans and spiralling into debt is very real for workers forced to wait weeks to be paid.
“It is an uncaring way to treat staff who worked every day of lockdown after being deemed essential workers by the company. Some have worked there for 40 years but unfortunately many are now in the process of finding other jobs.”
The company has proposed a loan scheme for staff to help bridge the gap but, according to Rankin, this still forces workers being into debt and risks them being trapped in a cycle of repayments.
He said workers at three of the company’s plants in England and wales are also opposed to the change while there is also rising concern that the pay roll system is not fit for purpose after complaints of wages being underpaid causing hardship for workers.
Rankin said GMB Scotland has now written to Fox’s Burton’s chief executive Simon Browne and Ferrero owner Giovanni Ferrero asking them to reconsider.
He said: “If it is not in the best interests of staff, the lifeblood of the company, then it cannot be in the best interests of the business.”
A spokesperson for Fox’s Burton’s Companies (FBC) said: “All our colleagues at our Paterson Arran factory are a hugely valued part of our Fox’s Burton’s Companies (FBC). We have been working closely with our colleagues and the union representatives as we move from weekly to monthly payment terms in line with industry standards. As part of this transition, we are offering our colleagues ongoing support, including the option of a no-interest bridging loan.
“We will continue to work closely with the Unions and provide our colleagues ongoing support throughout this process.”
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