Bakkavör blames Asda contract loss for job cuts

Bakkavör claimed the losses at its Newport site, which followed a 90-day consultation period with all EVS’s 178 staff, on Asda’s decision last year to cancel the contract and move its salad procurement in-house.

The firm also highlighted a tough trading environment as a significant factor behind the redundancies.

Bakkavör said it had made “significant efforts” to find alternative employment in the local area and relocate EVS staff elsewhere within the group.

“We anticipate 140 staff will be made redundant,” a statement from the firm revealed.

Major customer​

“Today’s announcement follows the news in 2011 that a major customer of EVS had elected to take a substantial part of its salads procurement to its own in-house operation.

“This, combined with the on-going challenging trading environment continued to have a significant effect on the volume of business managed through EVS throughout the remainder of 2011 and into 2012 and management has concluded that the business would not be viable going forward.”

In September last year, FoodManufacture.co.uk revealed that Bakkavör had cut 24 jobs at its other EVS site in Selby, as a result of the loss of the same Asda contract.

Bakkavör said it would make 50 redundancies among its weekly paid employees, with others being relocated to different sites.

The 24 redundancies would also affect salaried employees at the two sites in Yorkshire.

Substantial part​

Speaking at the time, a spokesman told FoodManufacture.co.uk: “We have had to adjust the scale of our operation to ensure the long term viability and sustainability of EVS following Asda’s decision to take a substantial part of salads procurement to its in-house operation.”

The news follows a 90-day consultation which started in June. More than 100 redundancies were originally anticipated.

Prior to the redundancies, EVS employed a total of 270 salaried and weekly paid staff across its Selby and Newport sites.

Meanwhile, earlier this month, the Bakers, Food and Allied Workers Union (BFAWU) blamed the loss of a supermarket contract for the loss of 140 jobs at fruit and vegetable producer Del Monte’s York factory.