The détente was reached after several months of negotiations, with GMB members at sites in Erith and Belvedere set to receive the pay award backdated to April 2024.
“We see this agreement as a positive step towards maintaining the long-term stability of the business while continuing to support our employees,” said Angelo Mastrolia, chair of Princes.
“I am grateful to the GMB Union for their constructive approach to the negotiations and their understanding of the wider economic challenges faced by the business. We remain committed to resolving the remaining disputes at other locations as soon as possible.”
Princes is now owned by Italian firm Newlat after a £700m deal was reached with former owner Mitsubishi in May 2024.
Unite strikes ongoing
While a deal has been struck with GMB, Princes remains involved in a dispute with Unite.
Strikes have been taking place at five Princes sites throughout this month after Unite rejected a 3% pay rise on behalf of its members.
Princes said the offer is above inflation and comes after the firm has issued several pay increases in recent years.
However, Unite has accused Newlat of withdrawing a pay rise offer of between 4% and 7% that was submitted by former owner Mitsubishi, and called for the firm to get back around the negotiating table.
While the strikes have caused disruption to Princes sites, Newlat has said there is no risk of shortages.
Touching on the Unite dispute, Mastrolia added: “We operate in a highly competitive market. In addition to a highly demanding customer base, we increasingly have overseas competitors seeking to take business outside of the UK food and drink manufacturing sector.
“The Princes board have to constantly balance operational costs – including wages – while staying competitive and being able to offer favourable conditions for colleagues evidenced by the agreement with GMB. Industrial action as we are currently experiencing with Unite does nothing but put our sites and jobs at risk.”
