Nearly 1,200 workers at UK boatbuilder Princess Yachts in Plymouth have secured a 6.5 per cent pay rise after voting in favour of industrial action, Unite, the UK’s largest union, said today (28 August 2025).
Unite represents more than half of Princess Yachts’ workforce. In July, Princess employees were informed during negotiations that their wages would remain unchanged this year, prompting a ballot in which more than 1,000 members voted in favour of potential strike action.
Union bosses said staff had initially asked for a below-inflation 3 per cent rise but were refused, which they argued would have left workers facing a real-terms 9 per cent pay cut due to inflation.
Unite regional officer Mark Richards — speaking to local outlet PlymouthLive in July — attributed the situation to Princess Yachts’ US-based owner, KPS Capital Partners. “They refused to fund the pay award for employees this year. They are not investing in the workforce — there is emotion around that,” he said.
Following the strike ballot, the company put forward a revised offer of 6.5 per cent from September, which Unite says its workers accepted in a further vote. The increase means those on the lowest pay grades will see annual wages rise by between £2,000 and £3,000. No strike action was scheduled or has taken place.
In a statement made this morning, Unite general secretary Sharon Graham says: “This is a huge victory for the Princess Yachts workers, who by sticking together in their union and voting for strike action forced the company back to the table. This is yet another example of how Unite’s absolute dedication to improving jobs, pay, and conditions is paying dividends for our members.”
Richards adds: “This deal could not have been achieved without the hard work and dedication of Unite’s workplace representatives. This goes to show that those wanting better wages and working lives should join Unite and organise their colleagues to join too.”
Princess Yachts, one of Plymouth’s largest private sector employers, posted a £24.5m loss in 2023 and cut nearly 300 jobs in 2024. In January 2025, the boatbuilder expressed confidence in its ability to return to profitability after reporting a £45.6m operating loss in its latest accounts, outlining a ‘turnaround strategy’.
In a statement made in July, the company said it is operating in a “highly challenging global market” and, although its turnaround plan is delivering positive results, any disruption to production would have put progress “at real risk.”
It had previously suggested staff might receive a “meaningful bonus” later this year if its financial position improved, with the potential for a rise next year, but has now agreed to the pay increase in 2025.
MIN has approached Princess for comment. At the time of publication, the firm had not responded nor issued any comment to the media regarding the pay rise.
Princess Yachts was acquired by US private equity firm KPS Capital Partners in 2023.
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