400 jobs set to go at dessert factory as takeover looms

UP to 400 jobs are under threat at a Shropshire dessert manufacturer as part of a company restructure ahead of its takeover.

Chilled food group Uniq operates the factory at Minsterley, near Shrewsbury, and it said the restructure was to allow it to focus on higher margin products.

The union Unite, which represents the workforce at Minsterley, said that it was concerned the job cuts were linked to the takeover of Uniq by the Irish convenience food company, Greencore.

Greencore, which earlier this year lost out to West Bromwich entrepreneur Ranjit Boparan in its attempt to secure Northern Foods, is set to complete its acquisition of Uniq next month.

It currently has acceptances from almost 98% of Uniq shareholders and its offer remains open until the end of August.

Jennie Formby, Unite’s national officer for the food and drink sector, said: “We are very concerned these job losses have been announced just days before Uniq is taken over by Greencore and it is difficult to believe these two events are not linked.

“Since Kraft’s takeover of Cadbury we have repeatedly made the case for a Cadbury’s law to protect British companies from predatory takeovers by companies where a sometimes reckless pursuit of shareholder value is more important than vital jobs in British manufacturing.

“Our members must not pay the price of takeovers with their jobs and conditions. Unite will be fighting very hard to protect our members’ interests at this very grim time.”

The 350 jobs losses are on top of 50 redundancies already announced by Uniq for next March.

In a statement, Uniq said it had decided to focus on its growing, premium dessert and Muller/Cadbury desserts businesses and to exit its loss making everyday desserts business.

“This will result in the transfer of certain selected premium desserts sales from Uniq’s Minsterley site to its Evercreech site and the cessation of production at Uniq’s everyday desserts business unit at Minsterley in the first half of 2012, with the loss of approximately 350 jobs.

“The everyday desserts sales being exited are approximately £36m.  The total cash cost of this restructuring is estimated to be approximately £10m, including capital investment.”

In July, Uniq announced its withdrawal from the premium differentiated yogurt market after April 2012. The operation is worth around £13m.

This will leave the Minsterley site employing around 100 people focussed solely on the attractive Muller/Cadbury chocolate desserts business.