Bakkavör blames Asda contract loss for job cuts

By Dan Colombini

- Last updated on GMT

Related tags: Remainder

Bakkavör has blamed an Asda contract loss for job cuts at its two Yorkshire sites
Bakkavör has blamed an Asda contract loss for job cuts at its two Yorkshire sites
Fresh food manufacturer Bakkavör has blamed a key contract loss from retailer Asda for its decision to cut 140 jobs at its English Village Salads (EVS) business in East Yorkshire.

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.

Related news

Show more

Related products

RSSL: Vegan Food and Drink Manufacturing Considerations

RSSL: Vegan Food and Drink Manufacturing Considerations

Reading Scientific Services Limited (RSSL) | 01-Jan-2021 | Technical / White Paper

With more people than ever before choosing to remove or limit their intake of animal-derived products, manufacturers are keen to develop suitable vegan...

Give Your Plant Based some Pure Pulling Power!

Give Your Plant Based some Pure Pulling Power!

Gold&Green Food | 28-Oct-2020 | Technical / White Paper

The fact you’re here shows you care about making consumers and the planet feel good!
Health and sustainability are putting the demand for plant-based...

Related suppliers

Follow us

Products

View more

Webinars