Tullis Russell staff are being denied a pay increase because of "challenges" in the paper industry.
Workers were called to a meeting last night, with more taking place today.
Several staff members have told us they were informed that a significant amount of revenue, expected from a customer, is no longer available. They also claim that the mill could operate four days a week, with employees working two day shift patterns. The 200 year old Glenrothes company denies that and says contractual hours, headcount, and pay are unaffected.
Latest accounts for the firm show it made a £3 million pre-tax loss in the year to March 2014, a £300,000 improvement on the previous 12 months.
A spokesperson for Tullis Russell said: "Demand across the paper and board industry has weakened over the past quarter, and in line with these changing conditions Tullis Russell has initiated actions to respond to the challenges that this brings.
"In the short term, Tullis Russell is focused on managing inventory levels by reducing short term production schedules to meet forecasted sales demand.
"Contractual hours, headcount and pay are unaffected.
"As an employee-owned business, Tullis Russell is ensuring all its employee shareholders are kept fully informed, and a series of briefings is currently taking place.
"In addition, under the current business conditions the company cannot proceed with the planned 3% pay increase that was due to be paid from April 2015.
"The Unite union and the employee ownership board have been fully engaged in the process."
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