160 jobs at risk as confectionery giant plans relocation

Confectionery giant Nestle is planning on cutting 300 jobs, including 158 in Yorkshire, according to unions GMB and Unite.

The unions have said that the company is moving production of the iconic Blue Riband chocolate biscuit to Poland as part of offshoring plans.

143 jobs are set to go in York and 15 in Harrogate, with another 110 at risk in the North East and seven in Scotland, according to the unions.

Nestle’s PR and HR departments appeared not to have been informed when contacted by TheBusinessDesk.com.

Blue Riband has been made in Britain since 1936 and is primarily consumed by the UK market – meaning it will have to be exported back into this country if production moves to Eastern Europe.

Tim Roache, GMB General Secretary, said: “To shift the production of an iconic British brand like Blue Riband to Poland is completely unacceptable.

“Nestle are throwing people’s lives, and those of their families, into turmoil for the sake of increasing profit margins.

“These factories should be exporting chocolate – not people’s jobs.

“The Government needs to step in before it’s too late – and reassure millions of workers across the country this is not just the tip of the Brexit iceberg.”

Eamon O’Hearn, GMB National Officer, said: “This announcement is exceptionally disappointing, and our reps will expect a full and thorough briefing at the National Forum meeting scheduled for Thursday.

“It is deeply ironic that this announcement is coming from a company that co-authored the Government’s export plan for the food and drink industry, which called for greater investment in the UK industry and support for quality UK jobs.”

This is a growing trend in the food and beverage sector, said Mark Jones, a food and drink solicitor at Leeds law firm Gordons. He explained: “Nestle moving the production of its Blue Riband chocolate to Poland and cutting jobs in the UK reflects a building momentum of packaged food companies.

“Mondelez is already producing some of its chocolate products in Poland, including Dairy Milk bars, and the failed takeover of Unilever by Kraft-Heinz reflects packaged foods businesses’ acknowledgment that costs need to be reduced if they are to preserve profitability in the coming years.

“Consumers are moving away from packaged foods in search of healthier choices and shifting production from the UK to Poland should reduce Nestle’s costs in the long run so it can maintain its profitability. Nestle and Mondelez’s moves are a sign of things to come, expect more businesses to follow suit.”