GMB slams mediation process as "window dressing

Members of trade union the GMB are set to tell European Union officials the mediation process examining relationships between licensees and pub companies is "window dressing and a total sham".

The union, along with members of anti-beer tie campaign group Fair Pint, will meet with the officials to discuss the block exemption of the beer tie on Tuesday (September 10).

Under current EU regulations, the beer tie is exempt from EC Treaty rules, which ban agreements containing clauses that prevent competition - but this is now up for discussion.

The GMB's Martin Smith said: "The GMB will tell the EU that the mediation process being discussed later this month by the pubcos is window dressing and a total sham.

"The EU needs to know that the block exemption has been abused by the financial sector with securitisation used to overcharge customers with higher retail prices and to exploit tenants, two thirds of whom earn the national minimum wage, in order to shovel money to bondholders, many based offshore.

"This was never the intention behind the block exemption. The time has come for the EU to call time on this racket."

Meanwhile, the mediation process, which has involved parties from across the trade coming together to discuss the future of the tied system in response to the highly critical Business and Enterprise Committee report, is set to conclude with two showdown meetings on September 21 and 22.

Nick Bish, chief executive of the Association of Licensed Multiple Retailers, who started the mediation process, said the meetings represent "D-Day" for the industry.