Grocery industry workers should brace themselves for torrid times as escalating downward price pressure from supermarkets is set to cause more job losses to Europe, industry union Amicus has warned.
Speaking after Colgate announced plans to close its Salford plant with the loss of 400 jobs and chilled food group Uniq confirmed it was to lose 500 staff, Amicus food and drink specialist Eddie Hulse told The Grocer that the moves were a sign of the times. “These manufacturers are suffering badly. If they’re not able to achieve the price cuts that a supermarket asks for, then the retailer sources from elsewhere, usually Europe. We’re going to see plenty more of the same.”
Amicus regional officer Pat O’Regan said he had met Colgate management. “We told them we are completely resisting the closure and want to know details of their plan. They will save no money… but they’ll be paying staff half the wages. That’s the real issue.”
Meanwhile, the Real Good Food Company has announced that it is likely to close its sandwich production facility in Rayleigh, Essex, with a loss of 71 jobs.