The Unite union has warned Darlington print company Cepac that it faces legal action if it follows through with redundancy threats at the plant because of ongoing industrial action.
Unite members began eight weeks of strike action on Monday, August 14 in a dispute over pay, claiming the company had failed to enter into meaningful negotiations.
The company has now announced that it is considering making 61 redundancies as a result of a downturn of work due to the industrial action. Unite has warned that if the company goes ahead with the job cuts, it will support workers with unfair dismissal claims. It has further warned that if the company attempts to pay redundancy pay at a lower rate than previously, this will result in a further legal challenge.
Unite general secretary Sharon Graham said: “The actions of Cepac are despicable, they should be thoroughly ashamed of themselves. If they think their underhand and potentially illegal actions will force Unite to take a step back in the fight for fair pay for Cepac workers, then they have entirely miscalculated the union’s laser like focus on always fighting for the jobs, pay and conditions of its members.”
Cepac offered staff an eight per cent pay increase, which is below the true inflation rate (RPI) of nine per cent. Unite says that the offer is subject to the workers accepting substantially worse conditions including longer hours, lower overtime rates and a change in shift patterns alongside what is, in effect, a significant pay cut.
Cepac produces corrugated packaging. Its clients include: HBCP (whose customers include Greggs, Costa, Subway and Pret A Manger) along with C&D Foods Group (whose customers include Aldi, Tesco, Morrisons and Asda). Other Cepac customers include Mars, Carlsberg, Innocent Drinks, Pernod, Lidl, Sainsbury’s and Diageo. The company’s latest accounts, for 2021, lodged with Companies House showed a gross profit of £34 million.
Prolific North has contacted Cepac for comment.
