Usdaw, the Union of Shop, Distributive and Allied Workers, has commenced a strike ballot at KP Snacks’ Ashby-de-la-Zouch site in Leicestershire due to an ongoing pay dispute. The ballot, which will conclude on 25 November, follows a previous consultative ballot reflecting member dissatisfaction.
In the ongoing negotiations for the 2024/25 pay terms, KP Snacks offered a 6.5% wage increase. However, this did not satisfy Usdaw’s members as it barely addresses the shrinking disparity between the National Living Wage and the pay rates at the site. Usdaw area organiser Ed Leach criticised the company’s offer, stating that it fails to deliver a satisfactory resolution.
The recent ballot saw a significant rejection of the company’s offer, with 87.5% of Usdaw members voting against it. Leach highlighted this result as a clear indication of the proposal’s inadequacy, urging KP Snacks to reconsider its stance. His concern is heightened by the potential disruption that a strike could cause during the peak pre-Christmas period.
Meanwhile, a spokesperson for KP Snacks expressed disappointment over the situation. They defended the 6.5% pay rise as competitive, emphasising that it is almost four times the current inflation rate of 1.7%. Furthermore, the spokesperson pointed out that when combined with last year’s increase, the total compensation rise reaches 15% over two years.
This development occurs amidst KP Snacks’ financial growth, with the company’s profits surging to approximately £100 million in 2023. Despite facing challenges such as a cyber-attack, the crisps manufacturer reported a notable increase in pre-tax profits, rising from £64.3 million in 2022 to £93.7 million in 2023. The growth reflects its successful portfolio, which includes well-known brands like Mccoy’s, Terrell’s, KP Nuts, and Popchips.
The unfolding situation at KP Snacks highlights the tensions between unions and employers over fair compensation, especially during economically challenging times. As the strike vote progresses, the resolution remains uncertain, setting a critical tone for upcoming industrial negotiations.
