Wigan food plant misses out on £140m investment after group U-turn

Rejection of new working practices has cost a Wigan food production plant £140m in new investment, according to bosses.

The Heinz Kraft site at Kitt Green, which employs more than 1,000 staff, was in line to receive the boost following an announcement by the US foods group in June last year.

Kitt Green makes iconic Kraft Heinz brands, including Heinz Beanz, Soups and Pasta, but the proposal could have seen products such as Heinz Tomato Ketchup, Mayonnaise and Salad Cream introduced at the site to meet demand from a new generation of UK consumers.

The plans, which included 50 new jobs, were backed by local and national Unite the Union officers.

But a ballot among workers rejected proposals by management for new working practices, the company said.

Today (March 9), it was revealed that the group has withdrawn its plans and, instead, shifted the investment to two European plants, in Poland and Spain.

Unite called for assurances over the site’s future following the U-turn.

Joe Clarke, Unite national officer for the food and drink sector, said: “This is a disgraceful betrayal of this loyal workforce.

“They were told to make sacrifices to receive this investment yet it has gone to Poland and Spain without any such demands being made.

“Our members are reeling from this news so we are seeking immediate, cast-iron safeguards that the UK plant and jobs are secure.”

He added: “We will not allow the UK workforce to be treated like this and Unite will fully support our members in any next steps that they wish to take.

“We will now instigate discussions with senior management at the company as to the future plans and investment for the Kitt Green site. The job security of the workforce is our priority.”

A Kraft Heinz spokesperson said: “The proposals for Kitt Green had been fully recommended by all Unite stewards on site, including at national level given the significance of the investment, and the creation of jobs.

“As a direct result of the ballot last year which rejected the package of measures and progress towards modernised working practices that was needed to underpin this investment at Kitt Green, we have re-evaluated the location to build additional production capacity for sauces.

“A decision has been taken for the current sauces investment to be made in our Alfaro and Pudliszki factories based in Spain and Poland, respectively.

“Whilst we can congratulate our colleagues in Alfaro and Pudliszki for this significant investment, it is disappointing that on this occasion the Kitt Green site was unsuccessful in securing this opportunity.”

However, the spokesperson said the group will continue to drive improvements needed at the Kitt Green site: “With respect to our current and future investment plans at Kitt Green, we are working to ensure that the right level of investments continue to be made at Kitt Green which remains one of the most important facilities within our network.

“As an ongoing process, the company will continue to evaluate the future growth across our various product categories and capacity gaps. Therefore, it remains important that Kitt Green is a possible option in the future when the need arises.”