Press Release: Cepac Darlington
Monday 14 August 2023
Cepac has responded to Unite’s decision to commence strike action at the Company’s Darlington facility on Monday 14th August.
Steve Moss, Group Managing Director, said the on-going threat of industrial action in recent weeks, culminating in action commencing today, was very harmful to the business and its customers. The notification of an initial 2 weeks of strike action with a further 2 weeks now added was particularly disappointing. Moss said,
“The Company has continued to present alternative and improved offers to Unite who have failed to fully and realistically engage with the Company on these offers. The pay awards on offer range from 8% to 17.5% dependent upon individual roles with a focus on transforming the business to become a profitable centre of excellence for sustainable packaging. Along with the generous pay awards offered, the Company is seeking to make some minor changes to terms and conditions, including a small increase in working hours for some employees. These changes are an essential part of the plan to increase productivity to ensure future growth and investment at Darlington. It is sad that Unite seem unable to engage positively to ensure the future of the employees at the Darlington site.’’
Moss explained that the impact of industrial action jeopardises the immediate plans to invest and secure the future of the business at Darlington,
“The Darlington site has a promising future with a significant market opportunity in sustainable packaging. We will still seek to commit investment, develop the business and protect livelihoods, given a willingness to co-operate on the part of the union.”
“Regrettably the Company is forced to continue to evaluate any negative financial impact on an on-going basis and the escalation to an all-out strike for 4 weeks only emphasises the urgent need for this evaluation. The uncertainty regarding production, heightens the risk that Unite’s action will seriously damage the business. We shall of course continue to take actions to seek to minimise disruption to our customer base. We have already been forced to postpone significant investment projects due to the adverse impact of the uncertainty created by this industrial action and to relocate new machinery elsewhere in our Group.’’
Moss added that customers and suppliers have continued to be extremely supportive of the Company and work with the Cepac through this period of disruption, adding that the Company will do all in its power to ensure continuity of supply in such challenging circumstances.
He also commented upon the impact that threatened escalation is likely to have on pay increases now and in the future,
“The escalation and strike action threatens the stability and future of our business. We are urgently reviewing the potential financial impact of the industrial action. However, it is likely to impact the affordability of the pay offers that are currently still on the table for discussion and the Company’s ability to pay them.”
ENDS