A NEW pay deal described as groundbreaking by unions and managements has been struck at a fruit drinks factory.

MD Foods has agreed a three-year pay and working conditions deal at its sites, including Blackburn.

At the heart of the new deal is a 48-hour limit on working hours - pre-empting expected limits set to be introduced under the Social Chapter.

"We believe this is a landmark agreement, not only for the dairy industry but for the entire food sector and beyond," said David WIlliams, Northern Regional Secretary of the GMB union.

Before the new deal there was a complex system of 97 pay grades at MD's sites, which include Blackburn and Bamber Bridge.

Those have now been replaced by three job grades covering the 1,500 staff at the company's six sites. And the new agreement includes improved sick pay, life assurance and a better deal for temporary workers

Said Colin Hall, director of MD Foods who led negotiations for the company: "Our approach was to negotiate an agreement and continue our long-established relationships with the unions.

"The result is a real example of management and unions pulling together."

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