Cadbury's bitter wages dispute with union Unite intensified this week as workers held a series of protests to coincide with Cadbury's interim results announcement on Wednesday.
Unite has accused Cadbury on reneging on a three-year wage deal for Cadbury's 1,300 UK production workers. It has claimed Cadbury had agreed a settlement of retail price inflation plus 0.5%, with a minimum raise of 2% and a maximum of 5%. Cadbury is offering 0.5%.
"The company has breached the agreement to pay workers in line with the cost of living for three years," said Unite national officer for the food and retail sector Jennie Formby. "If Cadbury were making a loss we'd be having a different conversation, but it has posted some exceptionally good results. Shareholders and management are getting their share they might have a pay freeze, but they're still receiving bonuses, so it's only fair staff get theirs too."
The settlement would also affect the redundancy payment received by workers at Cadbury's Somerdale facility, which will close later this year, with production shifted to Poland, said Formby, who added workers at that Polish facility had just received a 4% rise.
Cadbury UK managng director Trevor Bond said the company remained committed to the original three-year agreement. "It comes down to economic reality," he said. "All senior staff have had a pay freeze so in a broad sense our production staff are doing quite well, remaining in the upper quartile for the industry."
The company reported a 24% increase in underlying pre-tax profits to £262m on sales up 4% to £2.77bn for the six months to 30 June.
Unite has balloted staff on possible strike action.
Meanwhile, United has stepped up its efforts to persuade Diageo to alter its Scottish restructuring plans, which will lead to the closure of a Johnnie Walker plant in Kilmarnock.
Unite has American support including Jimmy Hoffa Jr and the Teamsters union encouraging an email campaign to change Diageo's mind.
Unite has accused Cadbury on reneging on a three-year wage deal for Cadbury's 1,300 UK production workers. It has claimed Cadbury had agreed a settlement of retail price inflation plus 0.5%, with a minimum raise of 2% and a maximum of 5%. Cadbury is offering 0.5%.
"The company has breached the agreement to pay workers in line with the cost of living for three years," said Unite national officer for the food and retail sector Jennie Formby. "If Cadbury were making a loss we'd be having a different conversation, but it has posted some exceptionally good results. Shareholders and management are getting their share they might have a pay freeze, but they're still receiving bonuses, so it's only fair staff get theirs too."
The settlement would also affect the redundancy payment received by workers at Cadbury's Somerdale facility, which will close later this year, with production shifted to Poland, said Formby, who added workers at that Polish facility had just received a 4% rise.
Cadbury UK managng director Trevor Bond said the company remained committed to the original three-year agreement. "It comes down to economic reality," he said. "All senior staff have had a pay freeze so in a broad sense our production staff are doing quite well, remaining in the upper quartile for the industry."
The company reported a 24% increase in underlying pre-tax profits to £262m on sales up 4% to £2.77bn for the six months to 30 June.
Unite has balloted staff on possible strike action.
Meanwhile, United has stepped up its efforts to persuade Diageo to alter its Scottish restructuring plans, which will lead to the closure of a Johnnie Walker plant in Kilmarnock.
Unite has American support including Jimmy Hoffa Jr and the Teamsters union encouraging an email campaign to change Diageo's mind.
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