Workers at Ardagh Glass in Yorkshire and Scotland have called off industrial action which was due to start at the weekend, after management gave them an improved pay offer.
Following negotiations on Friday, September 13, the company made an offer which will see 6% over two years, an improvement on the 5.5% deal which was rejected by employees.
A spokesman for Ardagh Group, told FoodProductionDaily it had made a further revised pay offer and was in pay talks with unions, which will be balloted amongst the members.
“We welcome the outcome of extensive discussions and thank the trade unions for working with us to outline a two year pay proposal, which they will now recommend to their members in a ballot,” he said.
“We believe this is a sensible decision, which enables us to continue to work in partnership with our employees, having made significant investments in the longer term to maintain growth and long term employment.”
Unite trade union said all industrial action - including overtime bans - at Barnsley, Doncaster and Knottingley in Yorkshire and at Irvine in Ayrshire had been called off, while its members vote on the offer. The ballot will close on Sunday, October 6, and the result will be known the next day on October, 7.
The improved offer is 2.75% from February 1 this year to August 1, when a further 0.25% will be paid until January 31, 2014. All pay will be backdated. There is a 3% offer for the pay year, starting on February 1, 2014.
“Unite and the GMB union had intense talks with the company on Friday which resulted in an improved pay offer,” said Tas Sangha, deputy regional secretary for Yorkshire, Unite.
“Unite will be recommending to its members that they accept this offer. In essence, more of the pay in year one will be backdated and an extra 0.5% has been added for year two.
“In the meantime, all industrial action and overtime bans have been called off.
“The company has signalled it would like a better relationship with the unions and, should our members accept this improved offer, we will be working very hard to improve relations with the management and chart a positive way forward for all concerned.”
Workers at both sites had voted overwhelming for strike action and industrial action short of a strike.
Ardagh Glass, which made £65m ($103m) in pre-tax profits last year, employs about 1,300 workers. The reports that Unite have received from the company show that it is projected to make £69m ($109m) pre-tax profits this year.