She summarized that the employees demand a 60 pence pay increase per hour and an extension of the holiday period from four weeks to five weeks. The reasons of their demands were also explained. Firstly, as inflation rate for this year was 3.1 percent and it is likely to increase to 3.3 percent in the next year, the employees expected to be compensated for the losses they made and will make. Secondly, other companies, similar in size, location and product line made their pay settlements and most of them increased their pay ranging from 3.5 per cent to 4.5 per cent whereas MSL made no increase. After explaining this situation, the shop steward asked the managers how they can resolve the situation and what they can afford to offer the employees. The managers firmly answered that they can offer a 24 pence increase per hour as the financial situation of MSL is not sound. Also, they added that they are concerned about the interests of the company and the employees. Furthermore, they explained that inflation also affected the company. They suggested a five week holiday extension for only the employees with 15 years' service along with the 24 pence per hour wage increase.
Osebhajimede then took the opportunity to ask what the reasons for the difficult financial situation of the company were. The managers explained that the company lost profits and invested heavily in new equipment to improve efficiency and productivity. They stated that they would like to provide workers with high wages, however, they could not afford to do it at that time. The representatives of the Union thanked the management for this explanation and added that the pay rise that the managers suggested was not acceptable as it would not even equal the current inflation rate. The representatives of the Union then asked if the managers can offer more on the pay increase. The managers proposed that 30 pence per hour wage was the maximum increase that they could offer at that time as they tried to reach a balance.