Tunnock's boss adds £550k to pension pot

THE managing director of biscuit firm Tunnock's - recently at the centre of a high-profile pay dispute - saw £550,000 added to his pension pot by the company last year.

The one-off payment received by Boyd Tunnock took his total remuneration to 615,193 in the year to 28 February compared to the 149,179 received by the highest-paid director the previous year, although that figure referred to a different director.

It is thought the pension payment, on top of 65,193 in salary earned by Tunnock, was made to reflect his long-term contribution to the firm famous for its teacake, snowball and caramel wafer biscuits and that the timing of the payment was related to accounting and tax issues.

Although he is still very much involved in the running of the 120-year-old company, Tunnock will be 78 next year.

The pension payment saw total boardroom pay more than double from 462,071 to 999,394 despite a fall in salary payments from 372,071 to 359,394.

During the year, sales at the company dipped slightly from 35.6 million to 34.8m with pre tax profits also falling from 1.05m to 1.02m. UK sales suffered a fall of more than 1.6m to 29.28m but export sales grew strongly from 4.63m to 5.48m.

Company secretary Bruce Reidford said: "The UK market continues to be the most competitive it has been for many years but we continue to fight our corner."

He said growth in developing export markets including the US and Australia had contributed to the increasing overseas sales. The company now exports to more than 30 countries with major markets including Saudi Arabia. Reidford also stressed that although trading conditions continue to be tough, particularly in the UK, the company had invested heavily in the business.

"We have spent around 5m over the past two years in new equipment so that we are ready to meet demand when recovery comes."

Staff costs for the 559-strong workforce, just two down on the previous year, were 11.1m, compared to 11.29m.

Dividends paid to the Tunnock family were 500,000, the same figure as in 2009.

Workers at the firm resolved a pay dispute with the company in October following two 24 hour walk-outs after Unite members rejected a two per cent pay offer.

After talks at the conciliation service Acas, workers agreed to a 2.5 per cent pay increase, backdated to the beginning of July this year, and a further 2.5 per cent from July 2011.

At the time of the settlement, Boyd Tunnock said: "The management team and I are pleased that a pay agreement has been reached. Our ongoing investment in the business and our staff equips us well for the future."