In December 2005 NACO put proposals to Dairy Farmers of Britain (DFoB) for review of the management pay agreement in the following terms:

  1. that a general increase of 3.5% be applied to salaries.
  2. that the same per centage increase be applied to the parameters of the broad pay band structure.
  3. that either before April 2006 if that be feasible or during 2006/2007 pay year, the broad pay band system be replaced by an agreed salary grading system on a conventional (narrower) salary grade basis.
  4. that a management bonus scheme be agreed and introduced as soon as possible based on whole business net profit before tax and distributions.

Initially, the company which employs some 140 NACO members, expressed a desire to open negotiations relatively early but a number of factors altered this plan and, after negotiations, the following was agreed for implementation from the anniversary date on 3 April 2006.

  • a general increase of 3.0% on salaries.
  • same percentage increase on the pay band system.
  • discussions to be opened during the 2006/2007 pay year on the prospects of replacing the broad pay band system.
  • that, while the company does not intend to introduce any management bonus scheme for the 2006/2007 pay year, this remains a joint objective between the business and the trade union when circumstances permit.