Disputes and Strike Action
A major dispute, reminiscent of the Grunwick dispute of the 1970s, ensued when it sacked 670 staff based at London Heathrow Airport in August 2005; the staff were gathered in a car park and the announcement made by megaphone. In sympathy with the sacked workers, British Airways staff at the airport walked out, and mass pickets of Gate Gourmet were organised by the Transport and General Workers' Union. Several workers alleged that Gate Gourmet had manufactured the dispute, in order to employ non-union workers at lower rates of pay and with worse conditions of employment. The company subsequently offered a redundancy package of more than twice the statutory minimum in an effort to resolve the labour difficulties, secure a new deal with British Airways, and avoid insolvency. The union later negotiated the reinstatement of some of the employees, but others have continued to protest at their treatment.
On 1 March 2007, Texas Pacific Group sold its remaining shares in Gate Gourmet to Merrill Lynch.
Read more about this topic: Gate Gourmet
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—Chinese proverb.
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