Axe hangs over the head of Bakkavör staff
Around 300-400 staff face redundancy at three Bakkavör factories in south Lincolnshire as the firm conducts a restructure amid “worsening economic conditions”
A 90-day consultation has been launched at Exotic Farm Produce in Kirton, Freshcook in Holbeach and Bakkavör Spalding in Spalding, which together employ 2,000 staff.
Under the proposed restructure, Exotic Farm Produce’s prepared produce operations would be transferred to two sister sites while the whole produce business would remain operational at Kirton. At Bakkavör Spalding, five operational units would be consolidated into four. At Freshcook, some ready meals production would be transferred to another site, said a spokesman.
The firm, which recently announced plans to close its loss-making Saxon Valley Foods soup and ready meals factory in Biggleswade, stated: “These are challenging times for the food industry and the Group remains cautious about the impact of worsening economic conditions on consumer expenditure on top of ongoing pressures from inflationary costs. These proposals form part of Bakkavör Group’s wider restructuring plans announced [last] year to align its cost base, improve operational efficiencies and adapt to current and future demand.
“The group believes re-organising production in this way is the most viable and positive option for the businesses. However, it will consider all alternatives to the proposals during the consultation processes.
“If the proposals go ahead the Group is committed to securing roles at other sites wherever possible for those employees at risk of redundancy.”
While the precise number of potential job losses has not been confirmed, it is understood that 15-20% of jobs across the three sites are at risk.
Despite the tough economic conditions, the company rejected claims made by City analysts (Food Manufacture, December, 2008, p4) that it had extended payment terms to suppliers in a bid to improve cash flow.
