Hundreds of jobs on the line as Tesco pulls ready meal contract
Tesco has terminated its contract with Kerry Foods, putting hundreds of Burton-on-Trent jobs at risk according to one union.
The Tesco ready-made meals contract, due to end in June next year, accounts for 75 per cent of the production at the Mosley Street plant.
A statement from Kerry said: “Regrettably, a major customer has confirmed it will be moving our chilled meals business, currently produced at our Burton site, to another supplier.
“We have been working together for nearly two decades and, as one of the biggest employers to the local area, our first priority is to our people.
“We will continue to work with them and relevant suppliers in the near future as we explore other opportunities for our business.
“We are still exploring the possibilities of what this means for our Burton site so cannot comment further on the potential impact on jobs.
“Our priority is our colleagues and we will continue to explore future opportunities for our business.”
Tesco said: “Following an extensive six-month review, we have taken the decision to make changes to the supply chain for our Indian and oriental ready meals.
“We remain absolutely committed to working in partnership with all our suppliers and will do all we can to support Kerry Foods during the transition process.”
Unite regional officer Rick Coyle said: “Tesco has abruptly terminated the contract for Kerry Foods to supply ready-made meals for its supermarkets.
“The contract has run for 19 years with no complaint about the service quality and delivery, which makes the Tesco decision all the more brutal.
“Kerry Foods’ management is currently looking for new contracts to replace the business that will be lost.
“Over the last three years, more than £20 million has been invested in the Burton-on-Trent plant, making it one the most modern food production sites in the UK. This should give confidence to the workforce that new orders will be obtained.
“I would like to pay tribute to the employees who have continued to work to a high and dedicated standard, despite the very real worries they and their families must be experiencing during this period of great uncertainty.
“Unite will do all it can to work with management in the quest for new work at this premier site.”
Unite says it has about 460 members out of the 1,000-strong workforce at the Burton-on-Trent site.
