newsTop stories READY MEALS AT DAWN?
Unite raised concerns after it was announced in April that Greencore, one of the UK’s biggest manufacturers of convenience foods, would be acquiring Bakkavor, another big player in the same market, in a £1.2bn takeover deal.
Greencore supplies all the major supermarkets and retailers, including Tesco, Asda, Sainsbury’s, Boots, Aldi, M&S, Co-op and Amazon, and produces sandwiches, ready meals, salads and other food to-go products.
Meanwhile, Bakkavor manufactures products including ready meals, breads, pizzas, dips, salads and desserts and likewise supplies many of the big supermarkets.
Unite has hundreds of members working in sites across the country for both Greencore and Bakkavor. In 2023, Unite had a pay dispute with Greencore, and after a union campaign, secured an above-inflation pay award for members at the Worksop factory in Nottinghamshire.
Most recently, members at Bakkavor in Spalding, Lincolnshire took months of strike action and ultimately voted on a pay deal, also above inflation, to end the strikes in March.
Despite these pay campaigns, both workplaces are dominated by low pay, and Unite is concerned that a merger will only further exacerbate a race-to-the-bottom on wages.
Unite has also expressed concern that the merger could be a bad deal for consumers, too.
As of writing, the deal must still pass regulatory approval by the Competition Markets Authority (CMA), which has the power to block mergers if it believes it would be harmful for consumers.
In 2019, for example, the CMA blocked a potential merger between Sainsbury’s and Asda because it believed “UK shoppers would be worse off” and it would lead to “expected price rises, reductions in
the quality and range of products available, or a poorer overall shopping experience”.
Commenting, Unite national officer for food, drink and agriculture Bev Clarkson said, “Unite has serious concerns about a potential merger of Greencore and Bakkavor food manufacturing companies.
“Both have a history of paying poverty wages to employees and less competition in the marketplace is likely to lead to long term wage stagnation and potential redundancies,” she added.
“It is also bad news for consumers as, at a time when prices are already rising, fewer competitors in the market will likely lead to faster price rises.
“Unite is calling for an urgent meeting with both companies’ management teams to address these issues and we will be supporting our members throughout this process.”
In the Bakkavor corner – Unite fears takeovers are bad for workers 6 uniteLANDWORKER Winter 2024
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40
