Food fight is settled with two-year deal

Members of the T&G and Amicus general unions at a Teeside food factory have accepted a two-year settlement worth 3.8% this year and inflation plus 0.5% in 2007.

The agreement at the Premier Foods plant in Billingham, which manufactures the meat substitute Quorn, means that two 36-hour strikes have been cancelled.

The new deal is identical to the first two stages of an earlier three-year pay offer, which also involved a further increase of inflation plus 0.5% in 2008. This was rejected last month by the plant's 37 workers, who said they deserved a greater reward for their part in the success of Quorn - strong sales of which were a major factor in Premier Foods' £27.9 million pre-tax profits in the first half of this year.

After a ballot showed strong support for strike action, management and the unions got together at the end of last month for what T&G senior regional industrial organiser Joe Keith called "a difficult meeting where both sides cleared the air".

The resulting two-year offer divided opinion among workers, with Amicus regional officer Bob Bolam commenting: "There were very mixed emotions - some angry and others understanding."

But he added that members had voted "overwhelmingly" in favour of the agreement, possibly because "the company has said it wants to invest in and expand the site and our members want to continue to be part of this successful company".