By Matthew Legg

Last updated at 14:28, Monday, 27 October 2008

A Cumbrian service station owner has rejected union claims it is cutting staff pay and benefits because of the credit crunch.

Killington Lake: Owner Delek denies it is forcing staff to sign new contracts with fewer benefits and holidays

Israeli firm Delek, which owns the Roadchef services at Killington Lake on the M6, has denied claims by the GMB that it is forcing staff to sign new contracts that would see them reclassified as temporary workers.

The company said workers were not being pressured to signing the new deals and that any that did would actually receive improved terms.

The GMB claimed Roadchef workers who signed the new agreement would lose holidays, sick pay and overtime bonuses and would no longer be paid for meal breaks.

The union claimed the cuts were being made because Delek was struggling to meet repayments on a loan it took out to buy the company.

But Delek said the new contracts would actually increase holiday allowance, from 24 days to 28 days, and would give 80 per cent of staff more time off then under their old terms.

The company said it was also offering a 10 per cent pay rise for all staff paid per hour and that it was implementing a uniform policy on pay for meal breaks because some staff currently get it and others don’t.

The company said no staff were being pressured into accepting the new contracts and that the GMB represents only 10 per cent of Roadchef employees.

It added: “Delek has fully met all obligations with regard to the acquisition of Roadchef, and will continue to do so.”

Roadchef employs more than 2,000 staff at 29 service stations across the country.

The company was sold to Delek in 2007 for £375m.

Roadchef was previously owned by two private equity companies, Nikko Principle Investment and Vision Capital.

First published at 11:25, Monday, 27 October 2008
Published by http://www.newsandstar.co.uk