Princess Yachts Workers to Vote on Strike Action Over Pay Dispute

Workers at Princess Yachts in Plymouth are set to vote on potential strike action in a dispute over pay. From today (23 July 2025), more than 1,000 Unite union members will be balloted on whether to stage weekly one-day strikes for up to six months. The ballot will also ask workers whether they support a complete overtime ban. Unite represents more than half of Princess Yachts’ workforce. Unite officials say members are frustrated after receiving no pay offer for this year.

The union reports that staff at the British boatbuilder, which was acquired by US private equity firm KPS Capital Partners in March 2023, had requested a 3 per cent pay increase — below the current rate of inflation — but that this was rejected by management. According to a Unite representative, the absence of a pay rise would equate to a real-terms income drop of 9 per cent due to inflation.

In a statement shared with Marine Industry News, Princess Yachts acknowledges the situation, emphasising that the firm is operating in a “highly challenging” market. The statement says: “We understand that Unite is balloting members for industrial action in response to this year’s pay review. While we respect the right of our employees to be represented and heard, we are disappointed that this step is being considered.

“The business continues to operate in what remains a highly challenging global market. Our turnaround plan is delivering positive results, and we’ve made significant progress in improving our financial performance. However, we still have some distance to go before we have completed this. Achieving this is not just a financial milestone; it is critical to building a stable, successful future for the company and its people.”

The firm states that employees would be in line for a “meaningful bonus” if the firm stays on course in the coming months. “As we’ve communicated internally, maintaining our current trajectory is essential,” the statement continues. “If we stay on course, this will enable a meaningful bonus for all employees this year and place us in a far stronger position to deliver a positive pay award in 2026. However, any disruption to operations at this stage puts that progress — and those outcomes — at real risk.”

Princess Yachts posted a £24.5m loss in 2023 and cut over 290 jobs in 2024. In January 2025, the boatbuilder expressed confidence in its ability to return to profitability after reporting a £45.6m operating loss in its latest accounts, outlining a ‘turnaround strategy’.

Unite regional officer Mark Richards — speaking to local outlet PlymouthLive — attributed the situation to Princess Yachts’ US-based owner, KPS Capital Partners. “They refused to fund the pay award for employees this year. They are not investing in the workforce — there is emotion around that,” he says.

Richards confirmed that the formal two-week ballot begins today, and that employees will be asked whether they support strike action, potentially taking place on Thursdays or Saturdays, depending on their shift patterns.

The company operates both a four-day weekday shift and a three-day weekend shift. The ballot will also cover a proposed overtime ban across the full week.

Richards told PlymouthLive: “Part of the problem is that retention is poor, people are leaving the business. The lower-grade workforce is (paid) below market rate and creeping towards minimum wage. They can’t afford to put food on the table.

“We asked for 3 per cent and then said we’d take anything, a day’s holiday, but they wouldn’t give us anything. If we don’t get a genuine rise this year then come next year we will be 9 per cent down attributed to inflation.”

He added that industrial action could begin as early as mid-August and could continue into February 2026 if members vote in favour. “We are open for negotiations,” he concludes.