British pubs are facing the prospect of a beer shortage, as the union for one of the United Kingdom’s largest brewery-delivery companies plans to go on strike at the end of the month.
Around 1,000 employees at GXO Logistics, which is responsible for nearly 40 percent of beer deliveries to pubs and clubs in the United Kingdom, plan on walking out for five days, between Oct. 31 and Nov. 4, for the first round of strikes, according to their union in a statement on Oct. 18.
The firm covers about 4,500 pubs in London and southeast England, with a network of 22 depots from Inverness to Southampton.
GXO depots across the country in locations such as Southampton, Aberdeen, Manchester, and Inverness will be affected by the rolling strikes, said the union.
Unite, the labor union representing the brewery drivers and deliverymen at the company, said that their action would “impede the ability of pubs and other venues to replenish their cellars prior to the World Cup.”
The potential beer-delivery stoppage comes weeks before the start of the FIFA World Cup, which begins in Qatar next month.
The union said it is upset at pending pay and job cuts and is threatening further action closer to the World Cup kickoff on Nov. 20 if the dispute was not resolved, and will also commence an overtime ban on Oct. 24.
Beer Delivery Union Negotiations Fail
“GXO can well afford to pay our members a pay rise that reflects rising living costs. The current offer it has put forward goes nowhere near that reasonable demand,” Unite General Secretary Sharon Graham told The Guardian.“Unite will support our GXO members every step of the way in their fight for a fair pay rise. GXO needs to come back with a much-improved deal.”
The workers said they rejected a deal, which they claimed only offered a 5 percent pay raise and also reduced employee sick pay.
“GXO can easily afford to pay, and Unite is determined to see that they do,” said Graham.
“The offer is highly competitive and follows an above-inflation annual pay raise of 4 percent last year,” said the spokesperson “The increase exceeds the industry average and, in every region, earnings for our drivers are above both the regional and national averages.”
Another dispute revolves around the plan to close the GXO depot in Dagenham, Essex, which will lead to job losses and an increased workload for drivers at the Croydon, Faversham, and Greenford depots.
The company told The Guardian that the strike would put its “members, the hospitality sector, and consumers at risk of unnecessary disruption.”
Beer and UK Politics
The beer-delivery service told Bloomberg that it has contingency plans in place to ensure that pubs and venues would be adequately stocked if the strikes interrupted the regular schedule of deliveries.“We are in constant contact with our customers, and should a strike go ahead, we have business continuity plans in place to ensure they are adequately stocked and minimize the impact on consumers,” a spokesperson for GXO told The Guardian.
The U.S.-based firm reported $777 million in earnings from its UK operations in the second quarter, with total adjusted profits of $176 million. The company made $2.2 billion in total revenue worldwide for the quarter.
The two strikes are another blow to the beer and hospitality industry, after the new chancellor of the exchequer, Jeremy Hunt, announced on Oct. 17 that he would reverse a planned freeze in the rate of alcohol duties.
This action will cause beer prices to soar for consumers across the country.
“The freeze would have delivered a £300 million saving to our industry at a time when we desperately need any relief we can get, to help to keep a lid on spiraling costs and keep the price of a pint affordable for pub-goers this winter.”
“The cost of doing business is completely out of control for pubs and brewers, and the failure to act today to reduce pressures on businesses will hit them extremely hard,” McClarkin explained.
