UK supermarkets face wine shortage as glass workers go on strike

Employees at bulk wine filler Encirc, which supplies all major supermarkets in the UK, have gone on strike over pay, saying the firm's "meanness" is about "greed, not need". But Encirc claims few in the sector have raised salaries as much as it has. Sarah Neish reports. In a statement shared with the drinks business, trade union firm Unite confirmed the Encirc strike will take place between 19 June and 5 July, warning: "There is set to be shortages of bottled, boxed and bags of wine on supermarket shelves this summer as more than 200 Unite members at the Encirc site in Avonmouth, Bristol strike over pay and collective bargaining." Unite claims that Encirc "has only offered its workers a 3.2% pay rise, and has repeatedly stated that from now on it will only give pay rises tied to inflation."

"Greed not need"

"Encirc is a very profitable company, with a turnover of more than £600 million," continued the statement, with Unite's general secretary Sharon Graham asserting that "Encirc's meanness to its workers is all about greed and not need." "This is a very lucrative company that can fully afford to pay its workers properly but it is choosing not to," she said. According to Unite, Encirc has effectively "removed Unite's collective bargaining rights, as any pay increases will be set by Encirc, without negotiations, before being imposed on workers". Graham stated that "Unite will not stand idly by and allow Encric to steal our members' hard won rights."

Biggest impact

db can reveal that Unite members "overwhelmingly voted" in favour of the Encirc strike and have agreed that workers in different parts of the business will take strike action on different dates and times to have the biggest impact. They will also instigate a 12 week overtime ban. "There is no doubt that this action will hit supermarket shelves," said Unite regional officer John Sweeney. "While shortages may be frustrating for customers looking to enjoy a bottle of wine this summer, the situation is entirely of Encirc's own making. Management has constantly refused to engage meaningfully. Encirc needs to return to the negotiating table with a vastly improved offer."

"Incredibly disappointed"

Encirc, part of the Vidrala group, told db it was "incredibly disappointed" with the planned industrial action. "At a time when we are already facing so many challenges, and need certainty for our customer base, this really is unexpected," it said. Having purchased the Bristol site just under two years ago, Encirc said that it has "worked hard to not only uplift pay and conditions, but to create a truly great place to work. If this latest pay offer was accepted, we would have increased pay for our Bristol-based site by more than 16% in less than two years. There are few companies in our sector globally who have done the same for their people." Continuing, Encirc added: "As a company we are resolute in our efforts to remain competitive whilst doing the best for our people, and we firmly believe that our offer was fair and proportionate."

Knock-on effect

The glass manufacturer and filler, which counts celebrity wine brands GN (Graham Norton) and Invivo X, SJP (Sarah Jessica Parker) among its customers, has said it will "mitigate any impact" the Encirc strike may have" and remains "open to dialogue with the union in good faith." But even so, the knock-on effect to wine availability in supermarkets is likely to be substantial. Encirc produces more than three billion glass bottles and other containers, and can fill up to 400 million litres of bulk shipped beverages every year. A large chunk of this ends up on UK supermarket shelves. The company has succeeded in converting a number of more premium wine brands to bulk, with the likes of Villa Maria transitioning to in-market bottling with Encirc last year. In 2023, former MD Richard Lloyd told db why “bulk wine is the future” and how Encirc intended to "revolutionise the supply chain in the United Kingdom."