Jobs at risk at Nestle site in York
The GMB and Unite Unions are warning that 98 posts could go, but Nestlé says they're investing £20 million at the site.
Last updated 28th Apr 2021
Nearly 600 jobs are at risk of redundancy across Nestlé sites - including York's.
Proposed changes to manufacturing by the company across York, Halifax and Newcastle have meant 573 roles are at risk.
A joint statement by the GMB and Unite unions says that "loyal Nestle workers at these sites have kept the company going – and the nation fed – through the pandemic".
Ross Murdoch, GMB National Officer, said: "To ruin hundreds of lives in a ruthless pursuit of profits, to the very workers who’ve kept the company going during a global pandemic, is sickening.
"Nestle is the largest food producer in the world, with astronomical profits. It can afford to treat workers right.
"Instead, they’ve allowed factories to deteriorate, outsourced production overseas and now slashed 600 jobs.
"It’s corporate greed at its worst – GMB and Unite will fight for every job."
Joe Clarke, Unite National Officer for the Food and Drink Industry, said: "The news about Nestle’s plans for its respective sites in Newcastle and York is a cruel body blow to the dedicated workforces, their families and, more widely, the regional economies.
"We will be asking for an urgent meeting with the management to ascertain the business rationale for these decisions from a multi-national company which is highly profitable.
"The fact these announcements have come during a global pandemic is particularly bitter and heartless.
"Unite will be liaising closely with the GMB union to strongly campaign against these misguided plans whose only motive seems to be increasing profits.
"We will also be giving maximum support to our members and their families in the coming weeks and months."
York Central MP Rachael Maskell said: "Today’s announcement will come as an immense shock to York’s Nestle workers. They were there for the company throughout this last difficult year, however Nestle’s decision to shed jobs in order to make greater profits, at a time like this, will leave a bitter taste in the mouths of people across York.**
"Investment in infrastructure is always welcome, but slashing jobs instead of redeploying people elsewhere in the business is a waste of talent. Long gone are the days when Rowntree’s sought to be the mainstay of manufacturing in the city, providing economic and social purpose. Nestle today are more interested in creaming off a profit for its hedge fund managers than supporting workers and their families.
"I call on Nestle to work closely with the GMB and Unite, the organised trade unions at Nestle, to find a solution to this jobs cull. Now is an opportunity to invest in manufacturing, food science and future opportunities to bring benefit to the company, workers and the city. Having met with the company this morning, I have vowed that I will do everything within my power to see jobs sustained in York, and for the company to rethink its decision."
In response Nestlé provided the following statement: "We are proposing changes to adapt our confectionery manufacturing for the future with a £29.4 million investment at our factories in York and Halifax and the proposed closure of our Fawdon site towards the end of 2023. Regrettably, these proposals put 573 roles at risk, subject to consultation.
"Nestlé Confectionery has an ambitious business strategy in the UK and these proposals are intended to support our long-term success in an increasingly competitive category. The proposed changes would create a more efficient manufacturing footprint and, in turn, allow greater strategic investment in Nestlé’s biggest confectionery brands.
"We have chosen to announce these proposals as early as possible to provide the maximum time for consultation with our colleagues and trade unions. We will make sure those affected are properly supported throughout this consultation process.
"The proposals we have shared with our employees today are that:
• Production at Fawdon would move to other, existing factories in the UK and Europe and Fawdon factory would close towards the end of 2023.
• We would make an £20.2 million investment at our York factory to modernise and increase production of KitKat in the city where the brand was first created in 1935.
• We would make a further £9.2 million investment at Halifax to build on its existing expertise and equip the factory to take on the largest portion of Fawdon’s current production.
"Our Fawdon factory is home to many smaller, low-growth brands and maintains a diverse and complex mix of production techniques. In contrast, our factories at York and Halifax have clearer specialisms and manufacture some of Nestlé’s biggest brands.
"We believe these proposals would strengthen the UK’s position as a critically important hub for Nestlé Confectionery and home to the expert manufacture of many of our most popular brands including KitKat, Aero and Quality Street.
"The City of York is the proud home of our confectionery business where Nestlé has invested more than half-a-billion pounds over the last three decades. The site’s main office building, Nestlé House, is currently undergoing a £9m refurbishment. York is also the base for Nestlé Confectionery’s global R&D centre which develops products for markets all over the world. A new manufacturing line was added to the centre in 2020 as part of a £4m investment.
"We believe that the business case behind these proposed changes is compelling and, ultimately, the best way to keep our business competitive in the long term. Nevertheless, we very much regret the uncertainty this announcement will cause our people and their families and we want to make sure they are supported throughout this process. There is now the time and the space for all parties to engage in a constructive consultation around today’s proposals and we welcome those discussions".