Headland Foods staff face redundancy pay dilemma

25-Feb-2011 - Last updated on 25-Feb-2011 at 13:05 GMT

Headland Foods: Staff worry about losing redundancy pay

Workers at Headland Foods in Flint are asking for a more flexible approach to redundancy payments from owner Kerry Group, given worries that they could lose money by taking new work before the factory closes.

The frozen own-label ready meals factory will close by the end of April, with 318 job losses.

Employees say there are job opportunities available locally, but one told the local media: “They [Kerry] say they are going to help us find work, but I have turned down three jobs now. If I go before April 21 I will lose my redundancy pay.

“I have asked if I can finish early so I can take another job and they said I will lose my money if I go, even though I can be easily replaced. This puts everyone in a difficult situation.”

Customer commitments a priority

Kerry’s corporate affairs director Frank Hayes told FoodManufacture.co.uk that the company had a responsibility to fulfil customer orders while the Flint plant remained operational.

He added: “We have been in discussions with the employees and their representatives. The scale-down commences mid April with the view to close by the end of April.

“We are confident there are employment opportunities in the district and we’re also looking at redeployment opportunities at other Kerry Foods sites. But obviously the redundancy arrangements were made in a way that means we can meet our commitments to customers.”

When asked if Kerry might take a more flexible stance with long-standing employees facing a dilemma of whether to take new jobs before April, Hayes said: “Obviously individuals can talk to the HR people on the ground and they will assist them in any way possible. But we’ve got to be sympathetic to our customers’ requirements as well.”

Kerry under no legal obligation

Legally, Kerry has no obligation to pay redundancy to staff that leave ahead of the official closure. According to the Department of Business, Innovation & Skills (BIS): “If you leave the job you are being made redundant from before your notice period has finished, you may lose your rights to a statutory redundancy payment.”

Kerry acquired Headland Foods in December, taking on factories in Flint and Grimsby as part of the deal. At the time a consultation with workers over the closure of the Flint plant was already under way, with plans afoot to move all production to the more modern Grimsby site where there is spare capacity.

Kerry is also hoping to redeploy some of the Flint workforce at its sites at Hyde near Manchester and Burton-on-Trent.