It is understood that 54 roles at the meat processor’s Wolverhampton operation are at risk of redundancy, more than half of the 98 strong workforce currently at the site.
A worker based at the factory told Food Manufacture they were notified their role was under risk of redundancy in a letter received last week. This was due to Scotbeef losing a large contract with Aldi.
Loss of Aldi contract
A letter addressed to all staff at the site said there was a risk that it would have to close down the Aldi business within the Wolverhampton location. The redundancies would be a result of “not enough work to sustain the current staffing levels within the Wolverhampton site”.
“We will be retaining the Hicare work for which there is a need to retain around 29 staff members,” read the letter. “The Company will be continuing to explore ways of avoiding compulsory redundancies and minimising the number of employees affected. We will be consulting with representatives of all affected employees in due course.
“If the Company is not able to avoid the need for redundancies, everyone currently employed within the Wolverhampton site is at risk of redundancy.”
Of the roles on the chopping block, production was set to take the biggest hit, with 28 from a total pool of 54 at risk.
Scotbeef produces primary and added-value red meat products for the UK retail sector, foodservice and export markets from nine sites across Scotland and England. The Wolverhampton site was opened in 2016, the same year the business introduced DNA traceability for all of its beef.
In 2018, a new £17m Scotbeef processing facility to be built in Aberdeenshire, Scotland, was been given the go-ahead by the local council.
Meanwhile, Oscar Mayer has announced plans to downsize its Flint, North Wales plant, putting 330 members of staff at risk of redundancy.