Type
Internal restructuring
Country
United Kingdom
Region
North West; Merseyside; Wirral
Location of affected unit(s)
Moreton
Sector
Manufacturing
Manufacture Of Food And Beverage
Manufacture Of Food Products
10.72 - Manufacture of rusks and biscuits; manufacture of preserved pastry goods and cakes

391 jobs
Number of planned job losses
Job loss
Announcement Date
11 May 2007
Employment effect (start)
Foreseen end date

Description

The second-largest biscuit supplier in the UK is to end some production at one of its factories with the loss of up to 660 jobs. Burton's Foods said the proposed cuts at its site in Moreton, Wirral, followed an 'extensive' review of its business operations. The company's chief executive said the job losses were 'regrettable'. The union Unite said the decision would 'devastate' the community and would be consulting with its members. They added that the factory was the biggest employer on the Wirral after car giant Vauxhall. The plant, which makes Cadbury's chocolate biscuits, will continue to manufacture other products. It is proposed that 300 jobs will remain at Moreton. Burton's Foods, which was bought by a private equity firm earlier this year, makes Wagon Wheels, Jammie Dodgers and Maryland Cookies, as well as a range of Cadbury's chocolate biscuits under licence.

On 4 June 2007 the company rose the job losses to 821. This figure was disclosed by Angela Eagle, Labour MP for Wallasey, the constituency hit by the job losses. A delegation of workers and union leaders from the Unite union were also due to meet employment minister Jim Murphy on 5 June.

Franny Joyce, regional organiser, said: 'Support is strong from the local community but there's no doubt we are facing a tough battle. Meeting the minister is a significant part of our campaign.'

'We'll make sure he knows the importance of the plant to the area and see what he can do to assist us.'

No-one was available from Burton's Foods to comment on the job loss figures.

As of August 16th 2007, a deal has been concluded by management at Burton's Foods and the union Unite to reduce the number of redundancies made at Moreton to 391. The deal also includes 7.3 million GBP worth of savings, and guarantees work at the site until 2012. Tony Woodley, joint general secretary of Unite, said: 'There is no doubt in my mind we have put together the best deal available for Moreton in the circumstances.'

'Work has been guaranteed and jobs have been saved. We now have a basis for looking forward.'

Paul Kitchener, chief executive of Burton's Foods, said: 'Following a constructive consultation process we have developed an alternative proposal for Moreton that will see the creation of a centre of manufacturing excellence for our seasonal ranges.'

'We would like to thank our Moreton staff and their representatives for their continued commitment and valuable input.'


Sources

  • 4 June 2007: BBC News
  • 11 May 2007: BBC Website
  • 16 August 2007: BBC News

Citation

Eurofound (2007), Burton's Foods, Internal restructuring in United Kingdom, factsheet number 65334, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/65334.