Michelin Pay Dispute Worsens

Workers at the Michelin tyre factory in Stoke-on-Trent have voted to take industrial action in a dispute over pay. The workers had previously decided to take measures including ‘working to rule,’ but then suspended preparations following a “positive” meeting with management. Now around 400 members of the Transport and General Workers Union (T&G) have decided to demonstrate outside the Remix plant. An overtime ban has been in place since 6:00am on Friday. As a result of the action, production at the plant is said to be very slightly down.

The latest developments are seen as a rejection of a revised pay and benefits package that was described as little more than “window dressing” by the T&G. While according to Michelin, “the agreement reached with the unions covers a series of local performance-related initiatives which mean that employees could earn up to an additional £300 in 2005.” Just over half of the plant’s 400 production employees voted to reject the offer. At the same time, a small number of workers have chosen to accept the revised deal. Around 30 members of the Amicus and T&G power group unions, who work as engineers, have agreed to accept the deal.

The T&G union also released figures, which it believes show that the cost of fulfilling its demands is affordable. “A locally revised package of performance related payments and allowances would, approximately, add a further £155,000. To link the original offer to pensions would add a maximum of £30,000 a year,” the union explained.

However, workers at Michelin’s Dundee and Ballymena facilities have already accepted the company’s original offer, leaving Stoke’s Remix workers as the only plant still negotiating the agreement. Stressing the serious implications of the situation, site manager, Peter Marsh said: “Industrial action will have long lasting consequences and gives me serious concern for the site’s long-term future.” In the meantime the manufacturer insists that it has to strike a balance between a fair pay deal and staying competitive, while remaining “hopeful” that the situation will be resolved quickly.