More than 90 unionised workers at the site began eight weeks of strike action on 14 August in a dispute over pay, because of the company failing to enter into meaningful negotiations, according to the union.
But the business said in late August that the industrial action had forced it to begin a redundancy consultation, with the potential loss of up to 61 jobs as it accelerates its restructuring plan for the site.
It said that Unite’s all-out strike action had “reduced the company’s orders and puts future orders at serious risk”.
Steve Moss, Cepac group managing director, told Printweek at the time that it was causing “immense harm to the business and its customers”.
He felt Unite’s actions to that point “would indicate that industrial action will keep being extended until Unite’s unrealistic demands are met”.
In a statement published by Unite yesterday (11 September), the union said: “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.”
Unite said the strikes “are a result of Cepac only being prepared to offer an 8% pay increase, which is below the true inflation rate (RPI) of 9%. Additionally, the offer is subject to the workers accepting substantially worse conditions including longer hours, lower overtime rates and a change in shift patterns. The offer is in effect, a significant pay cut”.
This was disputed last month by Moss, who outlined the specifics of and defended the company’s offer. He described it as “generous and realistic” and one that would position the business for investment, transformation, and growth, away from its traditional and declining markets and into growth areas of volume, sustainable packaging.
On the latest extension to the strike action, Moss commented today (12 September): “It is disappointing that Unite has announced a further two week extension to strike action at our Darlington site. This is likely to exacerbate the loss of customers and downturn in business experienced due to the current lack of capacity, including the total loss of all print capacity over the past weeks, as a consequence of the strike action.
“We have done and continue to do our best to keep our customers supplied, but it is entirely understandable that they will seek supplies elsewhere when Darlington cannot supply. Against this background it continues to be disappointing that Unite continues to fail to engage with the key issue that orders are drastically reducing as a consequence of the strike action.
“The threat of legal action contained within Unite’s press release will do nothing to restore orders and create work to keep people employed when work is simply not there in the future.”
Cepac produces corrugated packaging and serves clients including HBCP, which in turn supplies customers including Greggs, Costa, Subway, and Pret A Manger, along with C&D Foods Group, whose customers include Aldi, Tesco, Morrisons, and Asda.
Other customers include Mars, Carlsberg, Innocent Drinks, Pernod, Lidl, Sainsbury’s, and Diageo.
