Workers at Europe’s largest soft drinks factory in Wakefield have agreed to a huge pay rise, putting a halt to strike action that was due to start tomorrow (14 June).
The lowest-paid technicians at the Coca-Cola Europacific Partners (CCEP) plant will receive a 16.6% increase in their salary, with the highest-paid receiving 10.2%, according to Unite.
The lowest-paid clerical worker will receive an 18.1% increase in their salary, while the highest-paid will receive a 12% increase.
Salaries, therefore, will increase between £3,476 and £3,876 in the first 12 months, with further increases to salaries from April 1 2024.
“Supplies of the UK’s favourite soft drinks are now safe this summer. The threat of strike action meant Coca-Cola finally agreed to share a greater proportion of its mammoth profits with workers,” said Unite regional officer Chris Rawlinson.
"Throughout this process we have remained fully committed to maintaining talks with our colleagues at the site, and their representatives, to secure a positive outcome," a spokesperson for CCEP said.
The news will be welcomed by Unions and employees at the site, although rising pay and falling unemployment will put pressure on the Bank of England to keep raising interest rates.
Economists said the data reinforced views that the Bank's monetary policy committee will raise the base rate to 4.75% at next week’s meeting, with markets also quickly moving to price in peak interest rates of 5.7% by next February, up 12 basis points.
In the three months to April, annual growth in average total pay, including bonuses, picked up to 6.5% from 6.1% in the three months to March. This came above market consensus, which expected pay growth to hold steady.
Excluding bonuses, annual average earnings growth was 7.2% in the three months to April, compared to 6.8% in the previous three months. This was above expectations of 6.9% growth.