'Pubco mediation a sham', GMB tells EU

Anti-pubco campaigners will tell EU officials the pubco mediation process is a sham and action is needed to outlaw the beer tie.

The GMB Union and Fair Pint are due to meet EU officials on 10 September to discuss the block exemption on the beer tie.

Europe is re-examining the Block Exemption Regulations (BERs) that grant some commercial agreements, including the beer tie, an opt out from competition law.

The BERs expire on 31 May 2010 and the European Commission's Directorate General of Competition will decide whether to renew them or make specific changes.

Kathleen Walker Shaw from the GMB office in Brussels will be accompanied at the meeting by GMB political officer Ian McNichol and Fair Pint pub tenants.

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

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

"This was never the intention behind block exemption."