Workers at a pharmaceutical giant with a plant in the North East are being balloted for strike action after turning down a 4% pay offer.
More than 150 members working at the GSK plant at Barnard Castle, County Durham, have begun voting on strike action which could result in a walkout at the end of April.
It is understood that they have rejected a 4% pay offer, which came with a one-off payment of a week’s wages.
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GMB organiser Julie Wynn said: “GSK’s stance towards our members is both disappointing and insulting. They have disgracefully failed to consider the enormous effort they’ve put in or risks they’ve faced working through the pandemic.
“Mega-rich GSK bosses expect GMB members to take a real terms pay cut during a crushing cost of living crisis. They are treating our members with complete contempt and face industrial action shutting down the whole site if they don’t restrain their corporate greed.”
The pay row comes at a time of the highest inflation for 30 years, with analysts predicting that the cost of living could rise by as much as 8% this year.
Companies are under pressure from rising costs as well and will have to strike a balance between protecting workers’ living standards and not fuelling further inflation through wage increases.
A spokesman for GSK said: “At GSK, we offer competitive pay packages to attract and retain the best people. Salary increases are awarded each year and are calculated based on a combination of factors including company performance, affordability and the external economic environment. Base salary is just one part of our pay packages, which also include an annual bonus and other benefits.
“We recognise the impact of current inflation rates for our people and believe the offer we have made to our UK manufacturing colleagues covered by collective bargaining agreements is fair and reasonable. It is made up of a 4% increase to base salary. This is in addition to a one-off special award to all GSK employees of one week’s pay - equivalent to around 2% of base salary. The regular annual bonus also paid out above target for 2021.
“While it is disappointing that this offer has been rejected, we are committed to maintaining positive relationships with our skilled manufacturing workforce, and the unions that represent them, and will continue to engage constructively to try to find a solution.”