The National Association of Licensed House Managers (NALHM) is seeking an urgent meeting with Morgan Grenfell Private Equity (MGPE) to resolve a redundancy row involving former Whitbread managers.

MGPE, the new owners of 3,000 former Whitbread pubs, will have to honour existing pay terms and conditions, including severance agreements, under the Transfer of Undertaking (Protection of Employment) Regulations, NALHM says.

But the pub managers' union has accused Whitbread Holdings of deliberately changing redundancy packages more than a month before the sale to make the estate more alluring to potential purchasers.

It claimed there was no prior consultation or discussion about scrapping the enhanced Redundancy Severance Scheme which has applied since the mid-1980s.