Arla announced a proposal to shutter the Settle, North Yorkshire, facility in February 2025, with the dairy co-operative instead investing £90 million into its Lockerbie site in Scotland.
Since then the dairy co-operative has been engaged in discussions with GMB, which represents up to 130 people employed at the site, about the future of the Settle factory and its staff. Under current plans, the facility will cease to operate from 2027.
However, negotiations now appear to have reached an impasse, with GMB critical of Arla for pushing ahead with plans to shift production from Settle to Lockerbie.
“We are extremely disappointed Arla has chosen not to take forward any of the alternative business cases put forward through a genuine and collaborative effort with key stakeholders,” said GMB organiser Deanne Ferguson.
“Our commitment to the workers at Settle remains absolute and we will not let the town lose 130 skilled jobs without a fight.”
The union also confirmed that its members would soon vote on whether to go on strike: “GMB will now move to ballot our members on potential strike action.
“We urge Arla to keep the door open for further dialogue and GMB remains ready to work constructively with management.”
In response, an Arla spokesperson explained that it remains open to finding a new use for the Settle site moving forward.
“Over the last two months we have engaged with employee representatives and the GMB union in detailed and meaningful consultation, and we have carefully considered all alternative proposals brought forward during the process,” the spokesperson said.
“We can confirm that we will proceed with our plans for developing the Arla Lockerbie site to include Arla Settle’s production portfolio, however, we remain open to exploring alternative uses for the Settle site during the transition phase.
“Understandably, this remains a period of uncertainty for our colleagues, and our foremost priority is to continue providing support as we navigate the subsequent stages of the consultation process.”
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