Uniq has said today (23 March) that some 85 management and production jobs could go at its factory in Minsterley.

The announcement follows the loss of a GBP10m (US$16.2m) sales contract from the desserts division in January. Uniq said that following the contract loss it has been “exploring a number of opportunities to try to secure additional volume” to make up for the lost business.

However, managing director Steve Hill said: “Unfortunately we have not been able to make up for the lost business and therefore do not believe we have any alternative other than to propose a reduction in our headcount in line with the cost savings we need to make in order to secure the long term future of the site.”

The UK own-label manufacturer said that in order to “mitigate” the impact of compulsory redundancies, it is offering voluntary redundancy and has entered the consultation process with unions and employees.

Hill said that Uniq’s main priority now will be to work with potentially impacted employees to “try and lessen the potential impact of the proposed redundancies, and where necessary, help them secure alternative employment”.

Uniq announced earlier this week that its capital reorganisation plan has become effective, which will enable it to solve the pension deficit that dwarfs the value of the convenience operator.

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The company is in the process meeting the final conditions ahead of transferring a 90% stake in the company to pension trustees as well as a GBP14m one-off payment to clear its GBP436m outstanding pension deficit.

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