The manufacturer is to slow down production following a review of the profitability of its own-label customer contracts.
Peter’s said it had experienced exceptional increases in raw material prices and had been unable to pass these increases on to its customers in an “extremely competitive sector”.
The company said it had decided to terminate contracts it considered unviable for the business.
Terminate some contracts
“This, coupled with the normal seasonal decline within the sector at this time of year, will mean production at the company’s Bedwas site will be reduced and, therefore, a number of staff could be affected by these changes,” the manufacturer said in a statement.
“A period of consultation has begun with staff about potential redundancies. It is envisaged that the total number affected could be approximately 90 employees.”
Peter’s said it would work with staff to minimise the impact on them.
The Union of Shop, Distributive and Allied Workers (USDAW) has entered into consultation talks with Peter’s over it members affected by the redundancies.
‘Interrogating the business’
Jason Stevens, USDAW area organiser, said: “USDAW reps have entered into consultation talks where we are interrogating the business case for the proposals. We are seeking to minimise compulsory redundancies and ensuring the business has a viable future.
“In the meantime, USDAW is providing our members with the support, advice and representation they require at this difficult time.”
The redundancies at Peter’s followed news that up to 120 jobs are at risk at a Rugby site distributing Premier Foods cakes, which is managed by XPO logistics, according to the Bakers, Food and Allied Workers’ Union.
Meanwhile, high street baker Greggs continues to invest in consolidating its manufacturing operations and expanding its logistics capacity, resulting in fewer production jobs.