Branston beans maker threatens to move abroad amid bitter pay dispute

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The future of Branston beans production in the UK is uncertain as the Italian-owned maker, Princes Group, threatens to move production abroad and cut jobs amidst a pay dispute with workers. The chairman of Princes Group, Angelo Mastrolia, has warned that if workers proceed with planned strikes in February, the company will be forced to consider offshoring production and reducing jobs.

Employees represented by the union Unite rejected a 3% pay increase in December, arguing that they had been offered a higher raise of between 4% and 7% by the company’s former owner, Mitsubishi, before it was acquired by Italian conglomerate Newlat Food last year. Mastrolia stated, “All options to maintain the sustainability and stability of the company must be considered. Should Unite confirm the strike schedule for February, Princes will be forced to withdraw the 3% offer.”

Princes Group, founded in 1880 as Simpson & Roberts, is one of the UK’s largest food manufacturers with around 2,000 employees in the UK and 7,000 globally. The company manufactures and sells Branston baked beans in the UK under an agreement with Branston’s owner, Mizkan. However, the ongoing labor dispute has put the future of production in the UK at risk.

The union Unite has accused Princes of employing union-busting tactics during the dispute and has criticized the company for offering a 3% pay rise that was not above inflation at the time of the offer. Unite’s general secretary, Sharon Graham, condemned Princes’ behavior, stating, “This is appalling behavior from a shameful company. First, it pulled the rug from under our members by reneging on a pay deal and now it is threatening their jobs with these union-busting tactics.”

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Princes has cited “extremely challenging economic conditions” and rising costs, such as increases in the living wage and National Insurance contributions, as reasons for its decision to consider offshoring production. The company is not alone in considering moving operations abroad to cut costs, as other large employers, like Currys, have also announced plans to offshore staff to countries like India due to rising employment costs.

The uncertainty surrounding the future of Branston beans production in the UK highlights the challenges faced by companies in maintaining profitability in the face of economic pressures. As the labor dispute escalates, the fate of Princes Group’s UK operations hangs in the balance, with potential implications for jobs and the availability of Branston beans in the market.

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beans, bitter, Branston, dispute, maker, Move, Pay, threatens

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