Young's Seafood to cut 650 jobs while saving 250
The seafood manufacturer warned in July up to 900 jobs were at risk at both plants in Scotland. But, after reviewing earlier plans, now intended to part close both its Fraserburgh Watermill Road site and its Grantown-on-Spey smokehouse.
The Fraserburgh Watermill Road site will also stay open, abeit with a reduced operation, focusing on hot and cold smoked ready-to-eat products, Young’s said.
The Grantown-on-Spey site will retain its traditional smoking facilities. This plan was known as Young’s ‘alternative option’ during the consultation period.
Loss of £100M contract
The restructure followed Young’s loss of a £100M salmon processing contract with Sainsbury to a Norwegian seafood business Marine Harvest. Sainsbury will now source its salmon from Marine Harvest’s Rosyth facility.
Young’s Seafood ceo Pete Ward confirmed the decision following an “extensive review”, consultation with employee representatives and engagement with all interested stakeholders.
Young's Seafood plans
- Spey Valley site at Grantown-on-Spey to remain open
- Fraserburgh Watermill Road site to stay open with reduced operation
- Manufacture of other products to transfer to alternative Young’s sites in Scotland and England by May 2016
“This follows the decision by a major customer to transfer some of their business to a Rosyth-based supplier,” Ward said.
“We recognise the importance of the Fraserburgh and Spey Valley factories to their local communities and we are moving forward with a plan that will retain jobs at both of the sites.
“This decision has not been taken lightly and we’d like to say thank you for your continued dedication and commitment to the site during this challenging time.”
Phasing redundancies
Young’s Seafood will continue to consult with employee representatives on the exact number and phasing of redundancies, he added.
The majority of redundancies are likely to take place in early 2016. The company has agreed enhanced redundancy terms for those affected with employee representatives, including help with finding alternative work.
The Scottish government has confirmed it will provide support for those affected by the redundancies.
Young’s also made a number of changes to its leadership and governance in the face of the short-term and long-term challenges it faces.
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