DHL Supply Chain said it had not given up resolving a dispute among drivers and warehouse staff at its multi-user site in Bellshill, despite threats of strike action at Christmas.

The Unite union said an initial pay offer by the company to staff of 9% over two years had been rejected because it didn’t address the “poverty pay” it claimed was being experienced by the workers at the Scottish site, who earn £12.50 an hour on average.

Talks involving DHL, Unite and conciliation service ACAS last week failed to reach an agreement, despite an improved pay offer being put forward.

Unite said 88% of its members at the site voted against the new deal.

The union said it was also in dispute with DHL over its apparent failure to address working hours of drivers and their wider terms and conditions.

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Sharon Graham, Unite general secretary said the company was treating its members as “second class citizens” and complained it was behind the curve on wage levels: “They need to bring forward a new offer and quickly or our members will be taking strike action hitting the festive period,” she said.

Debbie Hutchins, Unite industrial officer, added: “With all the improvements being seen across logistics sites outside and also within the DHL group itself, the Bellshill site has not approached pay negotiations in line with industry.

“The reality is that they are dragging the company wheels in this dispute.”

But DHL said it was still working towards settling the disagreement. A DHL Supply Chain spokeswoman said: “Despite constructive talks last week with Unite at Acas, we are disappointed that the union has rejected our improved pay offer and is pressing ahead with industrial action at our Bellshill site.

“Further talks are scheduled where we hope to reach a satisfactory outcome for all parties, but contingency plans have now been drawn up to minimise the disruption should the action go ahead.”