Supermarkets are facing disruption to food supplies in the run up to Christmas as more than 700 Bakkavor Group PLC (LSE:BAKK) factory workers in Lincolnshire plan to strike later this month and through to January.
Tesco PLC (LSE:TSCO), J Sainsbury PLC (LSE:SBRY), Wm Morrison Supermarkets and Marks and Spencer Group PLC (LSE:MKS) will all be hit when the workers, who make supermarket own brand products including soup, sauces and deli goods, strike from 25 November to 2 January as part of a dispute over pay.
According to Unite union, many of these workers earn little over minimum wage, with some having to rely on food banks amid high inflation, while Bakkavor posted an adjusted operating profit of £102mln early this year.
Strikes were previously delayed from early November, but a below-inflation pay offer of 6.5% was rejected and led to a renewed plan for industrial action as negotiations collapsed.
Sharon Graham, Unite general secretary said: “The situation these workers face is exactly what is wrong with Britain’s economy today.
“A company earning millions and millions in profits expecting already low paid workers to take a pay cut while prices soar.”
Commenting on the strikes, a Bakkavor spokesperson said: “Bakkavor is very disappointed the Unite union is going ahead with strike action based on pay claims that are simply unsustainable in the current trading environment.”
Double digit inflation has seen strikes becoming more common across the UK this year, as workers face real-terms pay cuts.
Workers making beer and fast food also voted to strike last month. Royal Mail owner, International Distributions Services PLC (LSE:IDS) is set to be affected by repeated strike action during the run up to Christmas, while more rail company workers are walking out later this month too, with widespread disruption expected from industrial action on 26 November.