Union warns up to 120 jobs at risk as Yorkshire dairy proposed for closure

The GMB union has warned more than 100 jobs are at risk, due to plans to close a North Yorkshire dairy factory.

Arla Foods UK has proposed shutting its facility in Settle and shifting production to the company’s site in Lockerbie, Scotland.

The GMB says up to 120 jobs could be lost as services are mothballed before closing in 2027.

Deanne Ferguson, GMB organiser, said: “If Arla’s proposal to close goes ahead, it will be a devastating blow for the dedicated workers at Settle and for the local community which relies on this key employer.

“It will have a significant economic and social impact.

“GMB will stand side by side with members to make sure they are fully supported throughout this difficult period.

“We will now begin urgent discussions with Arla to explore all possible options to protect jobs.

“We call Arla and all stakeholders to engage in full and transparent discussions about the future of the workforce and to consider all available alternatives to compulsory redundancies.”

Arla Foods has confirmed it plans to invest nearly £90m into its Lockerbie site, stating this will enable it to “future proof” its UK production.

The business adds it aims to create a Centre of Excellence for the production of UHT and Lactofree milk at Lockerbie, which could create new roles in the local area.

However, it says this would also mean potential impact for some workers based at its Stourton site, and all colleagues at its Settle site, which it proposes to close.

Arla says it will enter into a collective consultation period with all affected staff.

Fran Ball, VP of production at Arla Foods, said: “The proposals announced today form part of our strategy to strengthen our manufacturing network and futureproof dairy production in the UK, and while this is an exciting announcement for Lockerbie our priority right now is to support our Yorkshire colleagues.

“At Arla we are committed to supporting everyone through periods of change and we understand that this will be a time of uncertainty for colleagues who work across our Yorkshire sites.

“We will be entering into a period of consultation with everyone affected by these proposals.”

Bas Padberg, managing director, said: “The proposed investment into Lockerbie showcases our commitment to driving change in the UK, and supporting the future of British dairy.

“There is an increasing focus on the role the UK food industry plays in helping to tackle the health crisis and provide good food to nourish a growing population.

“We are aware that this proposal has the potential to impact colleagues across some of our UK sites, and our priority is to support them through this challenging time.”

Board director, and Arla farmer, Arthur Fearnall, said: “We are incredibly proud to see this significant investment proposed for Arla’s Lockerbie site.

“We’re excited to see how this progresses over the coming years as we continue to work together to ensure all Arla farmer owners receive the best price for their milk.”