Relentless price pressure on meat processors is leading to more disputes with workers, according to the T&G.

Following last week's stark warning from the NFU over livestock farmers' income, pay disputes at Grampian Country Food Group, Dawn Cardington and Tulip show processors are feeling the pinch.

"It's no coincidence that the meat industry, and poultry in particular, is one where we're stepping up our operations," said a T&G spokesman. "Competitive pressures are leading to more disputes."

The British Meat Processors' Association also blamed the cut-throat competition between grocery retailers. "Pressure on retail prices has to be paid for somewhere, so you can see why people are trying to cut their costs," said director Maurice McCartney.

One processor who wanted to remain unnamed said the main challenge for the sector was overcapacity and intense competition from cheap imports. He also accused the T&G of becoming more aggressive since its planned merger with Amicus was unveiled.

The highest-profile union action so far has been a one-day strike at Grampian, after talks on pay and pensions broke down. A war of words has broken out with the union hinting at intimidation - something Grampian denies.

Last week, the T&G also claimed Irish-owned beef and lamb processor Dawn Cardington was cutting up to £100 per week off the salaries of workers in its boning hall.

Dawn hit back, saying the majority of the 200 workers affected would earn more or the same as they were before. "More than 85% of workers have accepted the new pay proposals," said a spokesman.

Pigmeat processor Tulip is also being targeted by the T&G for the closure of its Thetford plant at the cost of 400 jobs. The company refused to comment.

But the T&G claimed it was letting workers down. "The union will increase pressure on the company, including contacting its supermarket customers, if members continue to be treated with disrespect."

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