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Staff forced to offset wage rise by working Xmas Day

“SCROOGE” bosses at one of Britain’s biggest food production firms have been accused of cancelling Christmas after the introduction of the national living wage.

Samworth Brothers, which produces Ginsters pasties and Soreen malt loaf, have cut bonuses for staff on Christmas Day, Boxing Day and New Year’s Day. 

Workers have also claimed that they have been told they must work the holidays, although the company disputes this. 

The company has also cut back on tea breaks as part of contract changes designed to compensate for the introduction of the £7.20 minimum wage introduced last month.

Chief executive Alex Knight announced cuts to “premium and overtime payments” in a letter to 5,000 staff in February.

Staff working the seasonal shifts will be given a one-off £50 bonus if they work more than four hours but will still be left short compared with their previous terms and conditions.

Labour MP Jonathan Ashworth has blown the whistle on the company’s plans after meeting workers last week.

He told the Star: “Even if they get their £50, going from the centre of Leicester to some of the factories on the outskirts is going to cost them a lot of money anyway.

“The way Samworths are treating their staff at their Leicester sites is disgraceful.

“How scrooge-like to to deny workers time with their family on Christmas Day.

“The national living wage should be a pay rise for workers, not used as an excuse to undermine or dismantle terms and conditions and rip apart overtime agreements.”

In a statement the firm said there is “categorically no change to our contractual working arrangements for public holidays”and insisted “all employees will still receive their normal breaks and will not lose out on pay.”

They did though accept pay policies are changing, but claimed to be creating a "fairer, more equitable pay structure, under which most of our staff will receive a 15 per cent pay rise on the basic hourly rate this year, rising to a 28 per cent increase over the next three years."

Samworth Brothers, which claims “people are at the heart of our company” on its website, was named in a parliamentary debate last month as one of the companies which has used the introduction of the higher minimum wage to cut terms and conditions.

B&Q has also forced staff to sign up to a new contact with severe reductions in overtime pay that will leave workers £1,000 a year worse off on average, while Cafe Nero have stripped staff of their free lunch entitlement. 

A Business Department spokesman said: “We recognise that employers will respond to the National Living Wage in a variety of ways depending on their circumstances, but we do not consider it acceptable for companies to use it as an excuse to cut staff perks.

"We will continue to be clear that reducing wider remuneration packages and blaming the National Living Wage is short-sighted and only a one-off gain. It is not in the spirit of the introduction of the National Living Wage.

"Any changes to contractual pay should be discussed and agreed with workers in advance."

 

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