Strike action warning over plans to close dairy

The GMB Union says dairy company, Arla Foods UK, has rejected proposals to continue operating a North Yorkshire factory which employs 130 people.

As reported in February, the business said it was planning to shut Settle Creamery by the end of 2026 and shift operations to the firm’s site in Lockerbie, Scotland.

Now, the union says that despite proposing options to keep the factory open, the business will “push ahead” with the move, and has branded this a “devastating blow” to staff and the local economy.

Earlier this year, Arla said its own plans were part of a strategy to “futureproof dairy production in the UK”.

The GMB said that alongside North Yorkshire Council, and the Combined Authority, it had suggested alternatives such as a including a greenfield site, product diversification, and shared production use of the Settle site.

But, at a consultation meeting on Friday, the union said senior Arla executives had confirmed they would go ahead with plans to relocate to Lockerbie, and had dismissed the alternative options.

Deanne Ferguson, GMB Organiser, added: “We are extremely disappointed Arla has chosen not to take forward any of the alternative business cases put forward through a genuine and collaborative effort with key stakeholders.

“Our commitment to the workers at Settle remains absolute and we will not let the town lose 130 skilled jobs without a fight.

“GMB will now move to ballot our members on potential strike action. We urge Arla to keep the door open for further dialogue and GMB remains ready to work constructively with management.”

In February, Arla said it understood that this would be a time of uncertainty for workers employed across its Yorkshire sites.

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.”

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