Dental workers are all smiles over pay deal

Dental-floss manufacturer Perident has reached an agreement with the T&G general union on an improved two-year settlement which guarantees an above-inflation pay increase next year.

The deal is worth a total of 3% in the first year - a 2.6% increase backdated to January plus a further 0.4% from the date of the agreement. The 2007 pay rise will be worth the value of the retail prices index plus 0.5%.

This is a significant improvement on Perident's initial offer of a 2.5% increase, which was later increased to 2.75% on the condition that managers be allowed to downgrade staff at their discretion. But even a 2.75% rise would have raised the company's basic hourly rate to just £5.30 - which would be illegal from October this year, when the National Minimum Wage is to rise to £5.35 an hour.

Following the rejection of these offers by T&G members, and the breakdown of talks at conciliation service ACAS in early May, staff voted in favour of industrial action. But plans for a walkout were put on hold when management agreed to last-ditch talks, resulting in the two-year deal which has now been accepted in a ballot.

T&G regional organiser Tony Trench, who had previously accused managers of having a "despicable" attitude to their workers, said the participation of Perident managing director Ian Roberts in negotiations for the first time last month had proved instrumental in reaching a settlement.