M a r k D i l l e y

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IUF:Settlement reached in Gate Gourmet dispute

"Although the number of sacked workers was quickly adjusted to 670 - once Gate Gourmet realised that amongst those sacked for 'engaging in illegal industrial action' were workers on holiday, sick and maternity leave - the outrageous facts of the matter remained unchanged and, as the sordid background to Gate Gourmet's actions was gradually revealed, the company's conduct came under increasing public attack and its reputation worsened steadily.

For months prior to the sackings, Gate Gourmet had been engaged in negotiations with the T&G over concessions on salaries and working conditions in order to secure the financial survival of its operations in the UK. Gate Gourmet was in fact under pressure from its parent company, the US-based investment firm, Texas Pacific Group (TPG), to improve its performance. As has been reported, TPG even devised a plan to achieve cost savings for Gate Gourmet and better returns for its investors - a plan which Gate Gourmet swears was never put in place nor even seriously considered, but which bears an uncanny resemblance to what actually happened: workers were provoked into staging a walk-out which was used as a pretext for mass dismissals and the flying-in of replacement workers from outside the UK, workers who had been recruited through a labour-hire agency Gate Gourmet had earlier set up for the purpose. "