Retailer yields under pressure from GMB union
Burberry today offered to pay a loyalty bonus to workers at the south Wales Treorchy factory, which is due to close, as well as give£1.5 million over 10 years to a trust fund.

The offer amounts to a multimillion-pound improvement on the initial settlement. It consists of£150,000 a year for the next 10 years in a trust fund for the people in affected by the closure.

Despite Burberry bosses insisting that the closure was 'the most commercially sensible thing to do' earlier this week, they have agreed on the amendments.

The GMB union, local Welsh Assembly member Leighton Andrews and Rhondda's Labour MP Chris Bryant said in a statement today that workers accepted that the loyalty bonus was a 'significant improvement' on previous offers.

They said: 'Burberry has offered to provide an ongoing contract to any realistic new venture. We will hold Burberry to this and there will be further discussions about it. Despite public pressure and a clear case being made for the continuation of the factory, it is clear that Burberry remains committed to closure. We do not accept this.'

The GMB has led the extensive campaign to save the plant, securing an extra four months' operating for the factory and enhanced redundancy packages.

The union told MPs that there would be little work left in the textile industry after Burberry makes its exit.

Topics