Pladis has announced a proposal to restructure its factory in Manchester, which could result in the loss of 159 out of 470 jobs.
The snack manufacturer, which owns several brands including McVitie’s, Jacobs, Carr’s and BN, said the plan was subject to a ‘full and meaningful’ consultation with employee representatives.
The company added that while the Manchester factory remained a ‘critical’ part of its operations in the UK, producing many of its branded products, the site’s operating model was no longer sustainable.
The restructure would ‘seek to address growing external headwinds such as rising inflation, increasing energy costs and supply chain disruption pushing up production costs, at a time when the business faces a change in consumer demand’, Pladis explained.
“We understand this news will be very difficult for those in Manchester,” said Nina Sparks, vice president of supply chain for Pladis UK & Ireland. “Our Manchester factory remains an important part of our UK business and our priority now is to provide our colleagues with clear guidance and the right support as we start the proposed consultation process.
“Pladis is the proud custodian of some of the world’s best-loved snacking brands and we believe strongly in their enduring consumer appeal. But, like many other businesses, we are grappling with new and growing external pressures. We must, therefore, review and consider appropriate steps to safeguard the future of our whole business,” Sparks added.
David Gill, national officer for union Usdaw, said the news was “devastating” for its members, who would be given “support, advice and representation” by the organisation.
“We will now enter into meaningful consultation talks with the company, where we will interrogate their business case for these proposed job losses,” Gill added. “Our priorities are to keep as many staff employed within the business as possible and avoid compulsory redundancies.”
Pladis has a 16,000-strong global workforce spanning 25 factories in 11 countries. The company is headquartered in the UK where it has seven factories and a global R&D hub. Last year Pladis confirmed plans to close its factory in Tollcross, Glasgow, in 2022.