McVitie’s factory in Stockport is putting at least 160 jobs at risk. They are planning a restructuring at the factory. Therefore, the restructuring proposal may cost 159 out of 470 roles.

Company’s stance

The company is pointing rising production costs due to inflation and increasing energy costs as basis for the restructuring. Moreover, Pladis, the business owners confirmed proposals to ‘restructure’ the factory ‘subject to a full and meaningful consultation with employee representatives’. “The proposal could potentially result in the loss of 159 out of 470 roles. The proposal seeks to address growing external headwinds such as rising inflation, increasing energy costs and supply chain disruption pushing up production costs, at a time when the business faces a change in consumer demand. Manchester remains a critical part of pladis’ operations in the UK, producing well-known branded products, however the factory’s operating model is no longer sustainable and must be addressed as part of the proposed changes.” The company issued an official statement confirming the restructuring.”

Union’s reaction

On the other hand, the union members did not take the announcement well. Union bosses are terming the news as ‘devastating’. Moreover, they said that it amounted to a one-third cut in staff. Initially, union Usdaw said it would not enter into any consultation talks with the company. However, the union has now decided to negotiate with the company. “This is devastating news for our members, many of whom have given long service to the company and all worked throughout the pandemic when food manufacturing was identified as an essential service.” Dave Gill, Usdaw National Officer, said in his statement.

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    The union has reverted their decision and have now decided to renegotiate with the company. “We will now enter into meaningful consultation talks with the company, where we will interrogate their business case for these proposed job losses. Our priorities are to keep as many staff employed within the business as possible and avoid compulsory redundancies.”. Gill further added to his statement.

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