Cepac has responded to Unite’s decision to escalate industrial action at Cepac’s Darlington facility from 31st July, having suspended the original sporadic action due to commence on 18th July.

Steve Moss, Group Managing Director, said any form of industrial action, which has now been notified by Unite to an escalation to a 2 week all-out strike and action short of strike, will only add to the problems faced by a loss-making business. Moss said,

“The Company has continued to present alternative and improved offers to Unite who have failed to respond to any communications in recent weeks including Company attempts to ensure the safety of members while picketing during the originally notified strike dates. 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.’’

Moss explained that the impact of industrial action jeapordises plans to invest and secure the future of the business at Darlington.

“The Company is evaluating the negative financial impact on an on-going basis and the escalation to a 2 week all-out strike 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’’

Moss added that customers and suppliers have continued to be extremely supportive of the Company and work with the Company through this period of disruption. He also commented upon the impact that threatened escalation is likely to have on pay increases now and in the future,

“Any threatened escalation in itself threatens the stability and future of our business. Critically, and subject to urgent current review, industrial action is likely to impact the affordability of the pay offers that are still on the table for discussion and the Company’s ability to pay them.”

ENDS