Moran Logistics faces a 72-hour strike next week from a group of 100 dairy drivers - recently transferred into its employment by Arla Foods - at its Leeds depot in a dispute over pay and pensions.

Union officials have warned that milk supplies to supermarkets in the north of England will be disrupted over the Easter holiday, with the strike due to begin on Wednesday 1 April.

Both Unite and the GMB union are representing the drivers, who voted 91% for strike action and 90% for industrial action short of a strike.

The dispute follows the transfer of drivers earlier this month from Leeds-based Arla Foods to Moran Logistics under TUPE regulations.

In a previous statement to MT, Arla Foods - a cooperative owned by 13,500 farmers across Europe nearly 3,000 of whom are British - said the decision to outsource its outbound logistics arm at Leeds to Moran followed an operational efficiency review to keep the business competitive in “what continues to be a challenging period for the dairy industry”.

A spokesman said that under TUPE, contracts of employment including existing terms and conditions for all affected employees, would transfer to Moran Logistics. “We remain in communication with representatives of all those affected and we are committed to supporting our colleagues as we go through these changes.”

Even though Moran Logistics is now the employer, Unite argues Arla Foods is “short-changing and not honouring agreements” with the drivers.

Unite national officer for road transport Matt Draper said: “This dispute is quite complex. Arla Foods transferred the drivers to Moran Logistics without settling the holiday pay and pension benefits issues that could amount to several thousands of pounds, depending on the individual driver.

"So even though the outstanding issues are with Arla Foods, because the new employer is Moran Logistics, the strike action is directed towards this company.”

He added: “Ironically, we have had productive talks with Moran Logistics about achieving union recognition for the drivers and talks continue to achieve a potentially favourable outcome.

“The ball is very much in Arla’s court, and Unite and the GMB are ready for constructive talks at any time.”

Arla Foods and Moran Logistics have not yet responded to MT's request for comment.

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