The four-day strike scheduled by Unite union members at corrugated packaging company Smurfit Kappa in Northampton, due to start on Friday (17 April), has been suspended.
The 108 member workers first undertook a work stoppage at the company’s Northampton outpost on 1 and 2 April, in support of two senior stewards who were fired. Unite claims that the firings came after the stewards ‘stood up to the company over “race to the bottom” contracts and alleged incorrect bonus payments’.
Unite had said that it was “ready to hold talks with the company at any time”, but had not received a response to its offer to do so. As such, union members voted to hold a four-day work stoppage from 5.50am on Friday (17 April) until the following Tuesday (21 April). This would have run in tandem with the month-long work-to-rule and overtime ban, which finishes on 24 April.
However, the union has now announced that it is suspending this strike action to allow the appeals of the two sacked senior stewards to be heard on Friday. Following these appeals, the members will hold a meeting on Sunday (19 April) to discuss the outcome of the appeals and determine whether any additional industrial action should be taken.
‘If the appeals fail, the strike remains very much on the cards’
Unite Regional Officer Mick Orpin said: “The four-day strike scheduled from Friday is suspended to allow the appeals of the two stewards, whose treatment by management is at the centre of this dispute, to be heard.
“There will be a mass meeting on Sunday to discuss the result of the appeals. Obviously, if the appeals fail, the strike remains very much on the cards.
“However, we are hopeful of a successful outcome, so we can rebuild relations with the company for the benefit of all.”
Smufit Kappa to acquire Inspirepac
In related news, Smurfit Kappa has announced that it has agreed to acquire Inspirepac, a ‘non-integrated corrugated, high-quality print and display business’ in the UK.
The transaction, which aims to ‘further enhance Smurfit Kappa’s market leading position in the UK market, and build on [its] existing capabilities in the high-quality print and point-of-sale market segments’, will see Inspirepac bought from the Logson Group for a consideration of £43.5 million. It will reportedly be ‘immediately earnings accretive’.
Tony Smurfit, COO and President of Smurfit Kappa Group, commented: “We are delighted with the announcement of this acquisition and look forward to welcoming the Inspirepac team into Smurfit Kappa UK. They have built excellent businesses in many product and customer sectors which will add to our existing strengths, and support our continued drive to ‘Open the Future’ within the UK packaging market.”
Inspirepac is a private company with 279 employees, and operates two packaging plants and a further two erecting plants in the North of England.
However, there are also reports that US-based paper company International Paper is seeking to purchase Smurfit Kappa, which is estimated to be worth more than £6 billion.
International Paper is currently the largest paper pulp manufacturer in the world, employing approximately 65,000 employees in 24 countries. Smurfit Kappa currently employs around 42,000 people across 32 countries.
Find out more about Unite’s grievances with Smurfit Kappa.
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How will the government and DMOs address the challenges of including glass in DRS while ensuring a level playing field across the UK?
There's no easy solution to include glass in the DRS while maintaining a level playing field. Potential approaches include a phased introduction of glass, potentially with higher deposits to reflect its logistical challenges. The government and DMOs could incentivise innovation in glass packaging design and subsidise dedicated return points for glass-handling. Exemptions for smaller businesses unable to handle glass might also be necessary. Any successful solution will likely blend several approaches. It must address the differing priorities of devolved administrations, balance environmental benefits with logistical and cost implications, and be supported by robust consumer education campaigns emphasizing the importance of glass recycling.