More than 100 employees at Futamura's cellulose film packaging facility in Wigton, Cumbria, are preparing to vote on potential industrial action following a decisive rejection of the company's latest pay proposal. The GMB union announced on Monday that 94% of its voting members at the site turned down a 1.2% wage increase offer, setting the stage for a formal strike ballot.
The union is now advocating for a 3.8% pay rise for its members, arguing that the initial offer fails to keep pace with the cost of living. This demand comes against the backdrop of UK consumer price inflation, which stood at 3.4% in December according to the Office for National Statistics. The gap between the offer and the union's target highlights the ongoing tension in wage negotiations across the UK manufacturing sector.
Michael Hall, GMB's regional organizer, characterized the 1.2% proposal as "nothing short of an insult" in comments released by the union. The strong language underscores the frustration among workers who feel their compensation is being eroded in real terms. Futamura, for its part, has stated that discussions will continue "in good faith," with the Advisory, Conciliation and Arbitration Service (Acas) remaining involved in the process to facilitate a resolution.
The dispute emerges during a period of softening in the UK labour market. Recent data indicates that wage growth is moderating and unemployment is beginning to tick upward, as highlighted by Reuters. This broader economic context adds complexity to the negotiations, with employers often citing sluggish demand and persistent cost pressures as constraints on their ability to offer higher pay.
Futamura, which produces cellulose film for packaging and operates facilities in the United Kingdom, the United States, and Japan, now faces the prospect of significant operational disruption. While a strike is not yet certain—the ballot must still pass, and Acas-mediated talks could yield a new agreement—the potential for walkouts looms. The Wigton plant, though not a national industrial heavyweight, is a specialist packaging facility whose output is critical to certain supply chains, meaning any prolonged stoppage could have ripple effects.
This confrontation is not an isolated incident within the packaging industry. In 2022, employees at DS Smith, another packaging firm, engaged in a similar dispute, with the GMB union reporting a strike vote as workers pressed for improved pay. The recurring nature of these conflicts points to systemic pressures within the sector, where margins are often tight and labour costs are a significant factor.
Under UK law, unions are required to conduct a formal, legally compliant ballot before authorizing any strike or other industrial action. This process includes specific thresholds for turnout and majority support that must be met for the action to be considered official and protected. The involvement of Acas, a publicly funded body dedicated to preventing and resolving workplace disputes, is a common step in such negotiations, aimed at finding a compromise before relations deteriorate further.
The core question now is whether the workforce will endorse strike action and how quickly management and union representatives can bridge the substantial gap between the 1.2% offer and the 3.8% demand. The GMB maintains that its members are unwilling to accept another real-terms pay cut, framing the issue as one of basic fairness. Futamura has reiterated its commitment to the ongoing dialogue as the preferred path forward, hoping to avert a costly and disruptive work stoppage at its northern England plant.
