342 jobs to go at Wirral biscuit factory
WAGON Wheel-maker Burton Foods is planning to lay off 342 staff at its factory at Moreton on the Wirral.
The company said it was closing the plant in an attempt to deal with high costs and over-capacity in the industry.
A further 70 jobs will go at its plant in Llantarnam, South Wales. The Unite union has warned the decision will “devastate” the local community.
It says the workers believe the plant is viable and will work with the union to try and save it by lobbying Government ministers and local MPs.
The business is owned by the Canadian Imperial Bank of Commerce, US-based Apollo Global Management and Duke Street private equity. It owns and makes a number of well-known brands such as Jammie Dodgers and Maryland Cookies. The Moreton site makes Cadbury’s products under licence such as the Crunchie, Turkish Delight and Caramel biscuit ranges.
Chief executive Ben Clarke said: “The proposed job losses are deeply regrettable but, along with the new £25m investment we are making in our UK manufacturing capability, will help deliver sustainable profitable growth for the company in a highly competitive and challenging market.”
The cuts follow a review of the business shaped by a desire to exit unprofitable manufacturing, invest in “power brands”, outsource non-core activities and modernise the firm’s supply chain.
Burton plans to outsource the chocolate refining work carried out at Moreton, consolidate its multi-site distribution operations in Knowsley at one location and invest £7m at sites in Edinburgh and Llantarnam. The company has started a 90-day statutory consultation period with staff and unions.
Ritchie James, Unite regional officer said: “Our task now is to consult with our members on next steps, and to give them every reassurance of their union’s support at every level.
“This plant was saved from the axe in 2007 through the efforts of the workers, their friends in the community and their union. There is a mountain to climb but we will be doing everything in our power to make sure the last campaign wasn’t for nothing.”
