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Pubs to vote on industrial action Pubs to vote on industrial action
(about 13 hours later)
Thousands of pub landlords are to vote in the New Year on whether to take industrial action in protest at the amount they must pay in overheads. Thousands of pub landlords are to vote in the new year on whether to take industrial action in protest at the amount they must pay in overheads.
Over half of Britain's pubs are owned by large pub firms - pubcos - and the GMB union says they require landlords to buy beer at a premium rate. More than half of Britain's pubs are owned by large pub firms - pubcos - and the GMB union says they demand landlords buy beer at a premium rate.
It also says pubcos charge an up-front fee to publicans and monthly rent. It also says pubcos charge an upfront fee to publicans and monthly rent.
Publicans say fees are too high. Those defending pubcos say there is no sense in making their pubs uncompetitive. The British Beer and Pub Association said licensees were not employees and trade union laws did not apply.
They argue that they need to have some hold over the running of their pubs, so that they can make a profit.
Multiple pressuresMultiple pressures
There are an estimated 25,000 landlords in the UK who run tied pubs, which are rented from one of seven large property companies who also sell them beer.There are an estimated 25,000 landlords in the UK who run tied pubs, which are rented from one of seven large property companies who also sell them beer.
Licensees are not employees and pub companies are not employers. How can the GMB possibly hold a ballot in such circumstances? Mark HastingsBritish Beer and Pub Association
The GMB union claims the pubs are being charged up to double the wholesale price of beer available on the open market, and is demanding a £12,000 annual cut in wholesale payments for each pub.The GMB union claims the pubs are being charged up to double the wholesale price of beer available on the open market, and is demanding a £12,000 annual cut in wholesale payments for each pub.
The form the industrial action would take has not yet been specified.
GMB national officer Paul Maloney said: "If members vote for action, pubs will lower prices to customers during the dispute.GMB national officer Paul Maloney said: "If members vote for action, pubs will lower prices to customers during the dispute.
"The aim of the action by the tied tenants is to secure negotiation with pubcos to achieve very substantial cuts in wholesale prices and a resolution to a wide range of grievances experienced by the tied tenants at the hands of the pubcos' middle managers and their agents.""The aim of the action by the tied tenants is to secure negotiation with pubcos to achieve very substantial cuts in wholesale prices and a resolution to a wide range of grievances experienced by the tied tenants at the hands of the pubcos' middle managers and their agents."
In May, MPs from the Business and Enterprise Select Committee called for the Competition Commission to investigate arrangements that oblige pub tenants to take beer supplies only from their landlords. 'Parallel universe'
The threatened industrial action comes at a time of widespread concern about the number of UK pubs closing down. Mark Hastings, from the British Beer and Pub Association (BBPA), which represents the UK beer and pub sector, questioned the legitimacy of a ballot.
In the first half of 2009 UK outlets closed at a rate of 52 per week - a third more than the same period in 2008, the British Beer & Pub Association has said. "We are all struggling to understand what possible role the GMB has in this area," he said.
"Licensees are not employees and pub companies are not employers. How can the GMB possibly hold a ballot in such circumstances?"
He said the GMB was living in a "parallel universe" and was trying to recruit more members from the pub industry.
There were more important issues for the industry such as the "enormous impact" of the downturn and higher taxation, he said.
The BBPA found pubs were closing at rate of 52 per week in the first half of 2009 - a third more than the same period in 2008.
In May, MPs from the Business and Enterprise Select Committee called for the Competition Commission to investigate arrangements that oblige pub tenants to take beer supplies from their landlords only.