Pubco tied tenants will ballot for strike action in 2010

4th January 2010, 12:30pm

Thousands of pubco tied tenants across the UK will take part in an official ballot for industrial action in the New Year to secure “£12,000 cuts in the wholesale prices they are forced to pay the pubcos”, says the GMB union.

In May 2009 The House of Commons Business and Enterprise Committee (BEC) found that two thirds of tenants earn less than £15,000 per annum for up to 60 hours per week.

The GMB has calculated that the average tied lessee is being overcharged by pubcos by around £12,000 per annum, after higher "wet rents" and lower "dry rents" are factored into the equation. The union said it used the OFT report published in October 2009 to come to this conclusion.

The OFT said that lessees being overcharged by pubcos is something that is outside the remit of the competition authorities to remedy. OFT also said that the contractual issues that gives rise to this overcharging are matters to be dealt with in negotiations between pubcos and lessees. The BEC report had earlier highlighted the "total inequality of bargaining power between pubcos and lessees".

Tied pub tenants, through the Fair Pint campaign and the Pub Revolution movement, came to the conclusion during 2009 that the only answer was to combine into GMB to take direct action to secure negotiations with pubcos. The aim is 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.

A spokesperson for Pub Revolution said: "Parliament has given tied tenants legal immunity in trades disputes when we are members of an independent and registered trades union. There is no doubt in our minds that pub tenants need to use this immunity to free themselves of the yoke of the pubcos and GMB agrees with this. There is no other remedy since the OFT washed it hands of the dispute. We are delighted that thousands of tied tenants agree."

Paul Maloney, GMB National Officer for tied tenants said: "In furtherance of the trade dispute in tied pubs GMB will organize a nationwide official ballot in the New Year to seek a mandate for official industrial action by tied tenant members in the industry. If members vote for action pubs will lower prices to customers during the dispute."

Related Articles:

• 09 Feb 2010 - The GMB reveals details of 16 public meetings on beer tie
• 22 Dec 2009 - CAMRA issues legal challenge against anti-competitive practice in UK pub market
• 22 Oct 2009 - Office of Fair Trading gives beer ties the all-clear
• 15 Sep 2009 - Tied pubs are charging up to 80p more per pint
• 28 Aug 2009 - FSB urges government to abolish pub company tie
• 28 Aug 2009 - FSB urges government to abolish pub company tie
• 12 Aug 2009 - Why Unite wants to call time on long working hours
• 05 Aug 2009 - New forum on pubco valuations launched
• 24 Jul 2009 - Beer ties and the Office of Fair Trading
• 28 May 2009 - 'Pubcos profit margin nine times more than Tesco'
• 20 May 2009 - Unite and Fair Pint team up
• 14 May 2009 - Unite supports pub beer supply investigation
• 13 May 2009 - MPs call for inquiry into 'beer tie' activity

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molly phelan

06 January 2010 at 10:48pm

The tie is killing this industry. It is unfair and should not be allowed in this day and age. The Competition Commission should investigate the tied pubco model.

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