Fresh Del Monte plans to close a facility in York following a decision by retail chain Morrisons to withdraw a contract worth in the region of £16m.
The loss of the contract, which represents more than three-quarters of the work conducted on the site, led Fresh Del Monte to last week inform staff that it was entering into the mandatory 90-day worker consultation period over its plans for the facility.
Sam Vickers of the Bakers, Food and Allied Workers union told just-food that the “worst case scenario” would see all 140 permanent positions at the site cut.
“This again shows the power the supermarkets and large retailers have over companies,” he said. “We’ve got a situation where these people are being made redundant so Morrisons can make another couple of pence on the food that they sell.”
A spokesperson for Morrisions told just-food that the decision to award the contract to a different supplier was the result of a “comprehensive product review process”.
