Type
Offshoring/Delocalisation
Country
United Kingdom
Region
Location of affected unit(s)
Newcastle, York and other locations
Sector
Manufacturing
Manufacture Of Food And Beverage
Manufacture Of Food Products
10.82 - Manufacture of cocoa, chocolate and sugar confectionery
New offshoring locations
Poland

300 jobs
Number of planned job losses
Job loss
Announcement Date
25 April 2017
Employment effect (start)
Foreseen end date
30 April 2019

Description

Swiss owned confectioner Nestle has announced that it intends to relocate 300 production jobs from its sites in the UK and move them to its factory in Kargowa, Poland. Nestle has denied that the jobs are being moved as a result of the UK's decision to leave the EU and a spokesperson for the company has stated that the jobs are being moved in order to simplify production. Reports suggest that jobs will be cut from four of the company's UK factories, with the majority of the losses being at the Newcastle and York sites. It is being proposed that 143 jobs will be lost in York, 110 in Newcastle (the company's Fawdon site), 15 in Halifax and seven in Girvan, Ayrshire. 

Trade unions Unite and GMB who represent affected workers have reacted angrily to the plans, and have committed to asking Nestle to rethink their plans. A 45 day statutory consultation period will be started and the final plans will be known following the conclusion of the process. Nestle has already stated that it hopes to achieve some reductions through a voluntary redundancy scheme. 


Sources

  • 25 April 2017: BBC Website
  • 25 April 2017: The Guardian

Citation

Eurofound (2017), Nestle, Offshoring/Delocalisation in United Kingdom, factsheet number 90978, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/90978.