Burberry increases redundancy payoffs

Burberry has bowed to pressure and is increasing its redundancy payoffs in an effort to put to rest the clash over its decision to close its factory in Wales . The luxury fashion and accessories retailer provoked outraged responses from not only its employees and unions but also from celebrities like Sir Tom Jones and even the Prince of Wales, when it announced its plans to close its manufacturing plant in South Wales in favour of a cheaper location abroad. The dispute culminated in protests being held outside its stores in London , New York , Las Vegas , Chicago and Paris last month.

"Burberry is pleased to have reached an understanding with workers and unions - this is a good outcome for all involved," the company said in a statement. "Our focus continues to be on finding alternative employment for staff at Treorchy and we have identified a large number of opportunities."

GMB Union said that it does not accept the closure of the factory, although it did welcome the agreement to a "special loyalty bonus", calling it a "significant improvement." " The offer on the table now amounts to a multimillion pound improvement on what was originally offered in September. We welcome Burberry's agreement - as a direct result of the campaign in which we have been proud to take part - to provide £150,000 a year for ten years for a special Trust Fund for the Rhondda ," union officials said. GMB did, however, conclude that it would "continue to argue for (the factory's) continuation."