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Evening Standard
Evening Standard
Business
Simon Hunt

Thousands of London pubs could run out of beer as GXO Logistics workers go on strike

(Carlsberg Marston’s Brewing Company/PA)

(Picture: PA Media)

Thousands of pubs across London and the South East are in danger of running out of beer as around 1,000 workers at a major supplier to brewers are set to go on strike.

Drivers at GXO, which works with major brewers and pub chains like Heineken and Shepherd Neame, are set to go on strike between 31 October and November 4 in a dispute over pay. They will also commence an overtime ban on 24 October.

GXO Logistics delivers to around 4,500 pubs, clubs and bars in London and the South East and is responsible for about 40 per cent of the beer deliveries to UK pubs and venues.

Unite union general secretary Sharon Graham said: “GXO can well afford to pay our members a pay rise that reflects rising living costs. The current offer it has put forward goes nowhere near that reasonable demand.

“Unite will support our GXO members every step of the way in their fight for a fair pay rise. GXO needs to come back with a much-improved deal.”

In a statement, a GXO spokesperson said the Unite union’s statement was misleading and its pay offer was “highly competitive.”

“We are in constant contact with our customers and should a strike go ahead, we have business continuity plans in place to ensure they are adequately stocked and minimise impact on consumers,” the spokesperson said.

It’s the latest blow for the beer and pub industry after it was revealed yesterday that the UK’s latest chancellor, Jeremy Hunt, would be reversing a planned freeze in the rate of alcohol duty, pushing up pint prices for consumers across the country.

Emma McClarkin, Chief Executive of the British Beer and Pub Association said: “The Chancellor’s decision to reverse the Alcohol Duty freeze is a huge blow to brewers and pubs. The freeze would have delivered a £300million saving to our industry at a time when we desperately need any relief we can get, to help to keep a lid on spiralling costs and keep the price of pint affordable for pub goers this winter

“The cost of doing business is completely out of control for pubs and brewers and the failure to act today to reduce pressures on businesses will hit them extremely hard.”

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