Trade unions are urging Bakkavor and Greencore to be transparent on job losses in the wake of their announcement that acquisition terms have been finalised.
The landmark deal is set to form a UK food-to-go manufacturing behemoth with a combined turnover of £4bn and workforce of around 30,500 people.
While the companies noted how the merger will create “a platform for growth” including opportunities for employees to develop and progress their careers, unions quickly expressed “serious concerns” over the fate of their members working for Greencore and Bakkavor.
Unite the Union was involved in a planned strike at Greencore’s Manton Wood site in September 2023 – subsequently averted and leading to a substantial pay rise – as well as industrial action at Bakkavor’s factory in Spalding last year, which was finally resolved months later via an improved salary offer.
“Unite has serious concerns about a merger of Greencore and Bakkavor food manufacturing companies,” commented Unite national officer for food Bev Clarkson. “Both have a history of paying poverty wages to employees and less competition in the marketplace is likely to lead to long term wage stagnation and potential redundancies.”
Clarkson noted it was bad news for consumers too as, at a time when prices are already rising, fewer competitors in the market will likely lead to faster price rises. “Unite is calling for an urgent meeting with both companies’ management teams to address these issues and we will be supporting our members throughout this process,” she added.
GMB Union, which also saw its members vote to go on strike in a dispute over pay in September 2023 at Bakkavor’s pizza factory in Harrow, highlighted a potential issue arising from the deal’s small print.
Appendix 5 part A, located on page 83 of Bakkavor’s announcement, outlined a series of quantified cost synergies anticipated to be realised by the acquisition move. This included on operations footprint, stating “approximately 5% of the total annual run-rate pre-tax cost synergies are expected to be generated through the rationalisation of manufacturing sites and associated headcount currently operated by Greencore and/ or Bakkavor”.
GMB believed the reference to 5% cost synergies was “management speak for cost-cutting”.
“The likelihood of site closures and drop in headcount confirms our worst fears – that hard-working production staff will be facing job losses,” asserted GMB national officer Eamon O’Hearn. “It is disappointing that references to job losses and site closures was buried deep in the appendices of the announcement, and was not mentioned in emails to unions this morning.”
O’Hearn said it was no way to treat loyal staff, many of whom worked throughout Covid to keep food production going. “Any review initiated by Greencore needs to be transparent and include their workers’ trade union voice,” he added.
Bakkavor and Greencore respond
When contacted for comments on the matter, both manufacturers pointed to wording in their respective statements already published on 15 May.
Bakkavor’s release said: “It is anticipated that efforts will be made to mitigate the need for headcount reductions through the standalone growth of the Combined Group, natural attrition, the elimination of vacant roles, the slowing or pausing of select hiring plans and alternative job opportunities, and redundancies at each of Bakkavor and Greencore are not expected to be material.”
Meanwhile, Greencore’s announcement posted to the London Stock Exchange had the following paragraph: “The finalisation and implementation of any workforce reductions, including those referred to above and further below, will be subject to comprehensive planning and appropriate engagement and consultation with stakeholders, including impacted colleagues and any appropriate employee representative bodies and conducted in a fair and transparent manner. Any impacted individuals will be treated in a manner consistent with Greencore’s high standards, culture and practices.”
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