Workers at a County Durham chemicals company have started strike action this week amid an acrimonious pay dispute.
Almost 100 workers at the Consett-based plant have launched a series of 24 hour strikes, beginning November 30, over a 5.1% pay increase offer which GMB Union says angered its members. The union claimed the firm was potentially cancelling pre-booked holidays over the Christmas period - branding the firm a "grinch".
Last week the company's CEO Harry Swan said that a potential overtime ban among GMB members meant that in instances where pre-booked holidays needed to be covered by a colleague working overtime, "there may be no alternative than to cancel those holidays". Mr Swan said the industrial action would not affect the firm's annual shutdown over Christmas and New Year.
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However, a new statement from Mr Swan, sent to BusinessLive today, December 1, says that at "no point" has it cancelled any Christmas holiday entitlement.
Mr Swan said: "We fully understand and appreciate the financial difficulties facing our employees due to the cost-of-living crisis. However, because of the tough economic climate, the company is severely limited in terms of the level of pay increase it can afford. Like many companies in the UK, we have faced record increases in our energy costs and raw material prices over the last six months.
"Our energy costs in the first half of this financial year have been £1.3m, which is £800k more than the same period last year. This means the business has made a small year-to-date loss, despite price rises being passed on to customers wherever possible.
"On November 24, 2022, following discussions with the GMB and ACAS, the company put forward an improved pay offer of 5.1% for our hourly paid employees, which represents an average annual increase in overall earnings of £2,100 per employee. However, the GMB have rejected the improved offer and are now, regrettably, taking industrial action. The GMB have informed the company that 84 employees from a total workforce of 155 on the Consett site are union members.
"All our employees will be able to take their usual holidays over the company’s annual Christmas and New Year shutdown, which will not be affected by the ongoing dispute with the GMB. Following the GMB’s decision to ban overtime as part of the planned industrial action, the company was forced to review some holiday entitlement during December where these holidays were due to be covered by overtime working. At no point has the company cancelled any Christmas holiday entitlement.
"We continue to believe that a resolution to the current dispute can still be achieved through constructive dialogue. We remain hopeful that a fair and reasonable outcome for all those involved can be reached in the very near future."
Laura Maughan, GMB organiser, said ahead of the new statement from the company: "These dedicated Thomas Swan workers put their lives on the line to keep the company afloat during the pandemic. Instead of recognising that, the company has hit them with a real terms pay cut in the midst of a gruelling cost of living crisis. And if that wasn’t enough, they’ve resorted to Grinch tactics - cancelling all pre-booked holidays over the festive period. Thomas Swan workers – many with young children – now won't see their families over Christmas. They are understandably angry, but they are ready to negotiate. Thomas Swan just needs to make them a decent offer so they can make ends meet."
The £37m turnover Thomas Swan also has operations in the US and China.
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