Union calls Jacobs Douwe Egbert’s actions “immoral”

09/03/2021

Plans for “fire and rehire” agreements could lead to industrial action at the coffee factory

The Unite union has slammed as “immoral” plans by Jacobs Douwe Egberts to issue notices of dismissal and engagement at their Banbury site.  The union says the plans for so called “fire and rehire” agreements could lead to industrial action at the coffee factory.

The notices have been sent to 291 staff.

Unite is also angry at proposed changes to the company’s pension scheme which will mean the ending of the final salary system and introducing what the union says is an ‘inferior’ defined contribution scheme, subject to the fluctuations in global stock markets.

The national officer for the food and drink industry at Unite, Joe Clarke said: “The decision to adopt a ‘fire and rehire’ strategy in the midst of a global pandemic is immoral and we are launching a campaign, which could include a ballot for industrial action, to fight this attack on our members’ living standards.

“The company’s actions will also seriously damage the wider Oxfordshire economy as less money in pay packets will be fewer pounds to spend in the high street and hospitality outlets, once lockdown restrictions are eased.

“To meet the estimated 40 per cent increase in coffee drinking during the last 12 months, the workforce at Banbury has worked flat out supplying the nation with Tassimo, Kenco and L’OR Coffee.”

The union claims that the management of Dutch owned JDE have been seeking to erode employment conditions at Ruscote Avenue for some time.   Talks had been abandoned at the onset of coronavirus last year.

They say that bosses have now ‘come back with a vengeance’ with plans which will hit the living standards of the workers and their families, as well as the wider regional economy.

Mr Clarke said: “We restarted discussions in good faith in mid-January as the Covid-19 death toll reached its peak – there were more than 1,800 deaths on 20 January. Yet, this is the shabby way the company has repaid the loyalty of its workers who kept production running smoothly through the worst of times.

“They should be rewarding the workforce, instead of treating them in this Dickensian fashion.

“These appalling proposals have been compounded by draconian changes to the pension scheme that will seriously undermine our members’ ability to retire in dignity with a decent income.

“We don’t accept JDE’s business case that the Banbury site does not compare well with other coffee producers, or its sister plants globally – our members’ hard work, especially over the last year, is proof of that.

“Unite is prepared  for constructive talks with the management on the plant’s future, but the threat of ‘fire and rehire’ needs to be taken off the table for such negotiations to take place – goodwill needs to be shown.”

Speaking to Banbury FM in January a spokesperson for JDE said: “We’re proud of the strong journey we’ve been on since we entered the UK market five years ago and our employees’ hard work both during this period and more recently in what have been unprecedented times as a result of Covid-19.

“We can confirm that we’re proposing some changes to the way we operate as a business here in the UK. The proposals include simplifying terms and conditions for our employees and changing the structure of our global R&D organisation which involves transforming R&D in Banbury into a smaller facility which is focused on instant coffee and delivering products for test markets. As we are in the process of consultation with employees and the union on the proposed changes, we’re unable to comment on ongoing discussions.

“These proposals are needed because the external landscape has changed significantly but more fundamentally our cost base is not competitive. Making these changes now will put us in a strong position to grow in the future.”


Published: by Banbury FM Newsteam

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