Revealed: The bitter dispute between Enterprise Inns and GMB union over pub's new lease

THE GMB​
“In December GMB informed Vince Cable that Enterprise Inns offered Claire Muldoon of the Patternmakers Arms a new tenancy with a 42% rent increase from £16,470 to £23,450. She was told she had no automatic right to renewal of her lease ending in April 2014.
In our view Regional Manager Ashley Lovett knowingly arrived at the higher rental figure with scant regard to the Royal Institute of Chartered Surveyors guidelines, therefore breaching Enterprise Inns own Code of PRactice.  GMB considered that whilst Claire’s situation was far from unique we should give the Business, Innovation and Skills committee one further example of how this business model is practised even when Enterprise are under the upmost scrutiny. GMB provided full strategic and legal advice and support to Claire on how to deal with Enterprise and stay in the pub with no rent increase.  We asked to see all the paperwork to ensure that each and every part of the technical requirements on her tenancy renewal were complied with as part of comprehensive legal, political and media strategy. We had to use the media as Enterprise refused to talk to us directly despite repeated requests. GMB was pleased when last month Enterprise Inns abandoned the 42% increase. Claire has now got a new deal that is better than her existing arrangement.
Claire speaks for herself when she says the level of support she received was ‘truly heart-warming’ and that our rep Dave Mountford was ‘absolutely fantastic’.”
SIMON TOWNSEND, CHIEF EXECUTIVE AT ENTERPRISE INNS​
“I have been shocked by the recent reporting in the press, and in Parliament, of our discussions with one of our award-winning publicans. Looking back, what I find most troubling is the misinformation and incorrect advice that our publican received from her so-called advisor.
The Pattenmakers is a great community pub, largely thanks to the efforts of Claire and her team, and was awarded Derby CAMRA County pub 2014. With the pub’s tenancy coming to an end we were hopeful Claire would want to continue and started discussing what options were available to her six months earlier.
We established Claire was keen to earn greater discounts for tied products. So we offered an option in which greater discounts would be balanced by an increased rent, although the net effect would mean total costs would be broadly unchanged.
Sadly Claire was receiving very poor commercial and incorrect legal advice on the terms of her current agreement and the proposed new commercial deal was repeatedly misreported both to the media and more widely. Thankfully, through the intervention of a highly experienced and competent independent advisor, we were able to reach agreement with Claire that worked for both of us. I’m absolutely delighted for Claire, but also deeply disappointed that her GMB advisor nearly destroyed her future, pursuing an agenda that had nothing to do with the best interests of Claire, or the Pattenmakers, or the local community.”
PHIL DIXON, PUB TRADE CONSULTANT​
“I was intrigued when the GMB went on the public rampage citing Enterprise’s poor treatment of Mrs Claire Muldoon.
She was, according to their spokesman, protected under the Landlord & Tenant Act and yet Enterprise was trying to ‘deliberately misrepresent the situation to get around the law and bully her into a 42% rent increase’.
The fact that this £6,917 rent increase came with an extended and increased discount package worth around £7,665.00 on the current MAT of 252 barrels was conveniently ignored.
The GMB appeared to be relying on the fact that Mrs Muldoon had no recollection of contracting out of the L&T Act Sections 24-28. But those of us with experience know very few publicans can accurately remember what they signed on that very hectic day when they took on the pub several years ago.
The pubco confirmed she had signed, but stressed they would like her to stay as her beer sales increases were deeply appreciated.
My advice to Mrs Muldoon was that could stay, and on slightly better terms. But she would need to take a different approach than putting two GMB-inspired fingers up to Enterprise. If she did not sign a new agreement by 9 April they would start possession proceedings.
However the GMB still recommended in writing she did not sign anything, as this would prevent her challenging the ‘opt out’ status.
The GMB set this lady on the wrong course. They gave poor advice, misled MPs and still have not admitted they have got it wrong.”
CLAIRE MULDOON, ENTERPRISE TENANT​
“It’s never what you want but I am pleased with the outcome because it means I get to stay here a further five years and all my staff have a job for another five years, so it’s quite a relief. Ideally I would have been given further discounts on the beer, because that’s our main seller, but we did get the rent down. I wouldn’t have been able to stay with the rent Enterprise initially wanted.
Dave at the GMB has been amazing. He’s helped me immensely – he advised me and checked everything over, and I’m very thankful to him. I’m also grateful to Mr Dixon, because he has been helpful too with the negotiations. They made sure everything was as it should be.
And I’m grateful to Enterprise for seeing the light. I’m pleased they looked at the situation again and I get to stay.
I am aware of the friction between Mountford and Dixon. I’ve got a lot of respect for them both but I said please don’t use me in your games, I don’t want to be used as a pawn. I don’t do politics and I’ve always said that from the beginning. It’s never been about legal action – it’s just been about Enterprise allowing me to stay on a decent rent.”