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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. | |
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 upfront fee to publicans and monthly rent. | |
The British Beer and Pub Association said licensees were not employees and trade union laws did not apply. | |
Multiple pressures | Multiple 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. |
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." |
'Parallel universe' | |
Mark Hastings, from the British Beer and Pub Association (BBPA), which represents the UK beer and pub sector, questioned the legitimacy of a ballot. | |
"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. |
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