Burtons confirms Wirral plant closure
BURTON’S Food Group has confirmed that it is to close its biscuit factory employing 342 people at Moreton on the Wirral, although it will continue to operate a chocolate refinery on the site.
The company initially announced the closure in February, but since then lengthy negotiations have been taking place between the company’s bosses, unions and with the local authority with a view to finding a way to retaining operations at the site.
Unite has negotiated a deal with Burton’s bosses which will see a chocolate refinery maintained at the site, which will employ 60 people in total – 51 workers and nine members of Burton’s senior management. The refinery will also receive a £2.8m capital investment. However, the remainder of the plant will be closed and 219 jobs will be lost. The date of the site’s eventual closure has been also put back by 12 months to November 2, 2012.
Wirral Council Leader, Cllr Jeff Green, said he was “very disappointed” with the company’s announcement. He said: “I have made sure that we have left no stone unturned in doing everything possible to attempt to save the 342 jobs at risk.
“We have worked closely with Unite to support them in their counter proposals and made an offer of £450,000, the maximum allowed under EU State Aid limits, to the company directors towards the capital costs of any project that would save these valuable jobs.
“Despite these efforts the Company has today confirmed the closure of the plant. My thoughts today are with all the men and women who will now lose their jobs.
“They and their families are now my absolute priority and I have instructed council officers to ensure that we do all we can to support them into new employment.”
Burton’s Foods is owned by private equity firm Duke Street Capital. The company employs around 2,500 people in the UK and its last filed accounts for 2009 show that it made a pre-tax profit of £3.6m on sales of £312m.
Unite the Union’s regional officer Ritchie James said: “We believe we got the best possible outcome for our members in terms of sustainable jobs and enhanced terms for those being made redundant.
“The retention of the chocolate refinery and some 60 jobs that would have otherwise have been lost will be kept on the Moreton site.
“The plan to invest £2.8 million of capital investment into the plant will future proof job security for as long as can reasonably be expected.
“However, it is disappointing and upsetting that we have not succeeded in saving the whole site and the 219 jobs that will be lost. This is just the latest in a series of disappointments for the workforce and devastating news for its community.”
