Members of the Bakers, Food and Allied Workers Union (BFAWU) have accused Park Cakes of undermining loyal staff and creating a two-tier workforce by introducing about 30 new permanent staff on minimum wage contracts with worse terms and conditions.

The cake and dessert maker is sidestepping legislation that comes into effect on October 1 which entitles agency staff who work for 12 consecutive weeks with the same employer to equal rates of pay as permanent employees, said the union.

Low rate

Roy Streeter, the union’s regional officer described the move as “modern day slavery”. Once the October 1 deadline has passed, Park Cakes will be free to recruit agency workers on the same low rate as the newly recruited permanent workers, he said.

A spokesperson for Park Cakes told FoodManufacture.co.uk that the business "has not recruited any temporary staff but are recruiting 33 new permanent operative positions". The new jobs are spread across both part-time and 39-hour full time shifts.

Although Park Cakes consulted with the union, both parties failed to meet an agreement on the introduction of new contracts for new employees, he added.

Park Cakes maintains that existing staff contracts and rates of pay will remain unchanged. But employment contracts for new staff will vary between statutory and higher wages, depending on skills and experience.

Streeter said: “One of the plus points of Park Cakes was that it paid above the minimum terms and conditions.” Its employees generally had good career potential in the food industry, he added.

Overtime rates

But the latest move means workers who would have expected to receive above minimum wages are now being replaced with ‘zero-hour’ contracts, whereby no fixed hours are guaranteed, said Streeter. But workers are subject to minimum statutory terms and conditions, loss of shift payments and overtime rates, he said.

On October 3, the union plans to ballot workers at the Oldham bakery, which has a workforce of 500 of which 250 are full time employees, and 200 union members at the firm’s Bolton site. If workers vote in favour of industrial action, this could start by the middle of next month.

Park Cakes, owned by Vision Capital, makes desserts and cakes for Sainsbury’s, Tesco, Marks and Spencer and Asda.