On Tuesday, trade union Unite, which represents workers at processor Dairy Crest’s facilities and transport business, called the firm’s chief executive a ‘fat cat’ after it emerged that he is in line for a £1.2 million bonus in a proposed takeover deal, while workers are being offered only a tiny pay rise.

The Dairy Crest boss is said to be in line for a generous payment if the company is taken over by German Business Muller. Dairy industry giant Muller is awaiting the permission of the Competition and Markets Authority (CMA) to press ahead with the merger.

Unite spokesperson Matt Draper said, “Dairy Crest boss Mark Allen is the fat cat that got the cream – this is rank hypocrisy given that the management has offered its 3,000-strong workforce a miserly pay deal for this year.”

Dairy Crest wants to sell off its loss-making milk business to Müller, while keeping its profitable cheese and spreads. If the deal goes ahead, there will only be two major players in milk production and distribution in the UK - Danish co-op Arla and Muller, which joined with Robert Wiseman dairies in the UK in 2012.

Matt Draper said news of the chief executive’s pay rise, on top of a seven figure salary, “leaves a sour taste in the mouth”. The union spokesperson said, “Unite is calling for Mark Allen, who has been chief executive since 2007, to give up his bonus, so it can go towards giving all Dairy Crest workers a well-deserved pay increase.”

New wage negotiations between Dairy Crest management and union representatives are due to be held on Thursday 30 July.