The news comes followed the loss of a major own-label contract earlier this year and came after a consultation period with staff at the site.
Bakery output at the Cardiff site on Maes-y-Coed Road will be re-allocated across Allied Bakeries’ wider network as “the most effective way of responding to these challenges”. The site will continue to operate as a distribution centre.
A spokesman for the manufacturer confirmed the loss of 176 jobs at the site, which will include both management and operations staff.
“We are acutely aware of the impact of this decision on those affected, all of whom will be offered an enhanced redundancy package along with support to help find alternative employment either in the local community, or at another Allied Bakeries site in the UK,” said the spokesman.
Training and redeployment
“We will also be liaising with other local businesses, the Department of Work and Pensions and Careers Wales to help identify training and employment options for those impacted.”
Allied Bakeries confirmed it was reviewing operations at the Cardiff site in June this year in a bid to optimise production capacity, locations and routes-to-market across its bakery network.
However, the Bakers, Food and Allied Workers Union (BFAWU) has called the consultation process a “sham”.
Voicing the union’s dissatisfaction in Allied Bakeries’ process surrounding the closure, organising regional secretary at the BFAWU John James said: “We believe that it has not been meaningful and has been a sham as the company did not enter into the consultation with an open mind,” James claimed. “It was apparent that they had already made their decision.
“They have also failed to supply the union with the information that we need to assess the decision and consult with them on whether there are any other options available. It will be a very sad day for Cardiff if bread production is to finish at the bakery after so many years and more should be done to help to prevent some or all of the job losses.”
Legal action
The BFAWU has approached the Advisory, Conciliation and Arbitration Service (ACAS) and expressed its intention to take legal action on behalf of its members, supported by law firm Watkins & Gunn.
Watkins & Gunn managing partner Clive Thomas said: “Due to the absence of any meaningful consultation due to Allied Bakeries’ refusal to provide the required information, we are instructed to issue a claim for a Protective Award, initially to ACAS under their early conciliation scheme, and, if necessary, to take it to the Employment Tribunal.”
The end of production at the bakery follows a wave of redundancies and closures experienced by the food and drink industry over the past month.
This week, ice cream cone manufacturer Askeys announced plans to close its site in Aylesbury, with 68 jobs to be lost.
Plans to close Müller Milk & Ingredients’ Aberdeen depot could result in up to 50 jobs lost, while 400 roles have been lost at 2 Sisters Witham after production ceased at the site.
Meanwhile, union bosses are seeking assurances for more than 250 jobs at brewer and pub estate owner Greene King, after a £2.7bn takeover of the company by CK Asset Holdings (CKA) was announced earlier this week.