Northampton waste contractors announce record results as bin collectors vote on strike action over 2.5 percent pay offer

The firm at the centre of a dispute with waste collectors in Northampton plans to nearly double dividend payments to shareholders after announcing record results.

Around 70 GMB union members are balloting on whether to take industrial action after rejecting a 2.5 percent pay deal.

Results are due on April 4 ahead of a potential strike affecting nearly 100,000 homes in the town starting on April 20.

The French company's 2021 financial results announced on Thursday (March 17) revealed plans to boost dividends by 43 percent to one euro a share.

Pre-tax earnings rose by of 41.7 percent to €1,766 million aided by €382 million of 'efficiency gains' — above the annual objective of €350 million.

It added: "Veolia begins 2022 in very good condition thanks to its portfoliio of contracts largely protected against inflation."

Workers are angry that Veolia's contribution from West Northamptonshire Council will rise by 5.5 percent in 2022-23 while their pay offer is less than the 2.99 percent average increase in council tax bills.

A spokesman for Veolia's UK arm said this week: "To date we have not had final confirmation relating to the contract uplift for this year and would point out that this takes into account fuel, inflation and employment costs — any claims to the contrary are incorrect.

"We will continue to work to resolve this matter without disruption to residents' refuse services and urge the GMB to continue to follow our agreed processes."

Veolia signed a £130 million contract to deliver waste collection services for Northampton Borough Council in 2018.

That was inherited by West Northamptonshire Council following last year's local government shake-up.