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Bus manufacturing workers strike over pay

Category: Scotland Business News — Paul Morgan on September 24, 2013

Workers at a bus building factory in Scotland taken strike action in a dispute over pay, after discussions with Acas broke down.

The industrial action was taken on September 19, with another walk-out planned.

Around 600 workers have stopped working at the Alexander Dennis factory in Falkirk.

The action comes after Unite rejected the firm’s 3.5 per cent offer. The union said that with profits and executive pay on the increase, the announced rise was down on what was expected.

In July, the firm posted a 56 per cent increase in pre-tax profits, amounting to a cash rise of over £24 million.

Explaining that the offer was fair, a senior employee at the company said:

“Effectively it represents a 15 per cent rise on a compound basis over four years.

“There is no other UK manufacturing company, to my knowledge, that has offered a wage anywhere near that.”

The employee, who wished to remain anonymous, went on to claim the average annual pay for bus builders was £32,000.

Industrial action has been at elevated rates since the downturn.

A number of firms have managed to avoid strike action, however; many by implementing invoice factoring or discounting strategies where payment is delayed from suppliers.

The senior employee was bullish about how Alexander Dennis will react to the strike, saying that he expected the action to have a significant impact on the future of the company. He went on to suggest that the firm’s decision-makers will need to look carefully at where the buses are built in the future.

'Disclaimer: The information contained in these articles is of a general nature and no assurance of accuracy can be given. It is not a substitute for specific professional advice in your own circumstances. No action should be taken without consulting the detailed legislation or seeking professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a consequence of the material can be accepted by the authors or the firm.

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