Bakkavor has put forward plans to cut the workforce and make changes to shift patterns at sites in London.
The UK-based private-label group said its meals business had been affected by “difficult trading conditions in a highly competitive marketplace” and changes needed to be made. It has started consultation with employees and their representatives.
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The company said around 280 weekly and 30 salaried staff at its Cumberland, Elveden and Premier Park at Park Royal in west London are at risk of redundancy. However, a review of shift patterns during the talks “should enable” Bakkavor “to minimise any potential redundancies” to less than 100, the group believes.
“We believe that Bakkavor Meals needs to adapt to the changing market in which it operates to ensure that it remains and, where possible, becomes more competitive to deliver future growth,” the company added.
The GMB union said Bakkavor had lost a contract to manufacture products including mash potato for Tesco worth GBP32m. Bakkavor refused to confirm whether its proposals were linked to its business with Tesco.
Tony Warr, senior organiser at the GMB, said the union would put forward ways it believes could reduce the impact on jobs.
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By GlobalData“In order to mitigate the potential losses in jobs, the company has proposed creating a new shift pattern which is hoped will reduce the head count down to 77. This could also be achieved, in part, by removing all agency staff and moving fixed- term contract workers into permanent positions. The reason for the new shift is due to growth in houmous volume but the current shift pattern does not allow for 20 hours of daily production which will be required to meet the volume. It is proposed that the new shift pattern would see a reduction in hours from 40 to 38 hours per week,” Warr said.
Bakkavor’s financial results for 2015 are likely to be published next month. For the 52 weeks to 27 December 2014, the company booked net profit attributable to equity holders of the parent of GBP10.8m (US$15.4m) for the 52 weeks to 27 December, up from GBP6.3m a year earlier. Revenue was up 3% at GBP1.69bn.
