Nestle trims 645 jobs at York |
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Thu, 21 Sep 2006 11:30
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LONDON - The world's largest food and drink company, Nestle has announced that it will be shedding 645 jobs at the Rowntree chocolate factory in York. The move means that the production of Smarties, which has been going on for the past 70 years in the UK will be stopped.
"The UK confectionery market is extremely competitive and Nestlé Rowntree must therefore ensure its operations are cost effective," said a statement issued by Alistair Sykes, chief executive of Nestlé UK. Nestle said the move was a part of restructuring "the competitiveness of the York factory and the group's overall European confectionery business".
Smarties have been produced in York since 1937. The production will now be taken up at a Nestle unit in Hamburg. The production of the Dairy Box chocolates is being moved to Spain, while the Black Magic line is shifting to the Czech Republic.
Unions are unhappy with the move to axe jobs in York. GMB union called it a bleak day for York. "Nestlé failed to invest adequately in the plant and building in York. To use this neglect as the reason to move heritage brands to plants overseas, where [it] did invest, is not acceptable," said John Kirk, organizer for members in York. He added that Nestle could have invested more in the infrastructure. "We will certainly be opposing the transfer of profitable work to Europe. Smarties is part of the York heritage."
Nestle said it would invest £20 million in the York plant, where 1,800 people are currently employed.
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