The 2 Sisters Food Group are closing a large poultry processing plant in Cambuslang, Scotland, which will be a "devastating blow" for the community, according to local daily The Herald.
After eight weeks of consultation with the Unite union, economic development body Scottish Enterprise, and local and federal politicians, the group said it would close the "heavily loss-making operation" which will mean the loss of 450 jobs. Employees were informed on Thursday of the closure.
Local politicians said that the loss of the 55-year-old plant was "hugely disappointing", while the Unite union signalled it would investigate alleged breaches of consultation, the publication reported.
'Trying extremely hard'
The 2 Sisters Food Group said, "Following an extensive period of consultation with colleagues and external agencies, it is with regret that we can confirm the closure of our site in Cambuslang. This is not a decision we take lightly. Since day one, we have been very open on the big challenges the factory faces. In fact we have been trying extremely hard to reverse the position for a considerable period of time.
"We have invested several million pounds since 2014 and expanded by taking on more people, yet it is still a heavily loss-making operation. We have tried every turnaround option available to us for several years, ranging from cost reduction measures and an attempt to grow the business organically. It has made little difference. And after many hours of talks in recent weeks, we have not seen any credible proposal to change our view."
The group said it would try to reduce any mandatory redundancies and look at opportunities for redeployment of staff.
"Crocodile tears"
Unite convener Scot Walker commented on the closure,"In the message to workers today there is a great shedding of written crocodile tears.
"The reality is different. It is about a closure decision that was already reached before consultation began. And then a process to deliver the company’s foregone conclusion.
"What a shabby way to treat a workforce that has shown great loyalty to this company."
Ged Killen, Labour MP for Rutherglen and Hamilton West, said,"This announcement is a devastating blow for the workforce, their families and the wider community in Cambuslang.”
"I know this will be an incredibly difficult time for the workforce, their families and the local areas affected by the decision to close.”
He added, "Unfortunately, despite our very best efforts, the 2 Sisters Food Group has decided that closure cannot be avoided."
Challenging Year
Longtime CEO Ranjit Singh Boparan stepped down as CEO of the company in February, following a challenging year. Boparan Holdings Limited reported a 57.6% decrease in operating profit in December.
The 2 Sisters Food Group recently announced the creation of 250 new roles in Coupar Angus, Perthshire. At the beginning of February, the group announced plans to close three of its production facilities across the UK, resulting in the potential loss of 900 jobs.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Karen Henderson. Click subscribe to sign up to ESM: European Supermarket Magazine.
