RISKY BUSINESS
Major supermarket plans to close bakery business putting 400 jobs at risk
Union bosses have accused the supermarket of throwing "workers on the scrapheap"
A HUGE supermarket has announced plans to close its bakery arm putting 400 jobs at risk.
The UK’s fifth largest supermarket has been accused of throwing “workers on the scrapheap” by unions.
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Morrisons has said it started a consultation over the potential closure of its Rathbones own-label bakery operation in Wakefield.
The decision comes after a "thorough review".
The move will put 378 workers on the site at risk of redundancy.
Morrisons saved the bakery business from administration in 2005 but has struggled to make it profitable in recent years.
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The site is part of the supermarket's Myton Food Group, which runs 18 food factories to supply its stores with a variety of products.
Rathbones makes 47 different bakery items including sliced bread, crumpets, pancakes, hot crossed buns and muffins.
A Morrisons spokesperson said: "After a period of growth and investment, the business has been loss making for a number of years.
“Although we have tried several routes to return the business to profitability, none have been successful.
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“The current proposals do unfortunately mean that colleagues at the site are at risk of redundancy and we will do everything we can to help those colleagues affected."
They added that the supermarket will investigate whether there are any suitable roles for staff elsewhere in the group.
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It is understood that Morrisons is still considering options to continue to make some baked breakfast items such as muffins and croissants at the site.
If this happens then some jobs could be saved.
Morrisons added that it is considering all options for how it could change its business model to protect as many jobs as possible.
The supermarket is owned by US private equity firm Clayton, Dubilier and Rice.
What are my redundancy rights?
BEFORE making you unemployed, your employer should still carry out a fair redundancy process.
You are entitled to be consulted on the redundancy lay-off first and to receive a statutory redundancy payment, as long as you've been working somewhere for at least two years.
How much you're entitled to depends on your age and length of service, although this is capped at 20 years. You'll get:
- Half a week’s pay for each full year you were under 22,
- One week’s pay for each full year you were 22 or older, but under 41,
- One and half week’s pay for each full year you were 41 or older.
Sadly, you won't be entitled to a payout if you've been working for your employer for fewer than two years.
There should be a period of collective consultation as well as time for individual ones if your employer wants to make 20 or more employees redundant within 90 days or each other.
You are also entitled to appeal the decision by claiming unfair dismissal within three months of being let go.
Morrisons' 450 in-store Market Street bakeries will not be affected by the potential closure.
Sarah Woolley, general secretary of the Bakers, Food and Allied Workers Union, accused Morrisons of throwing "workers on the scrapheap".
She added: “They have asset stripped Morrisons, with our members now bearing the brunt of their mismanagement with this short-sighted decision to close the site.
“This treatment of people is plain wrong and unfair on the hundreds of people who work at the site and who have had their lives turned upside down by this decision.”
Last week newly filed accounts for Rathbones revealed the bakery made a pre-tax loss of £3.7million in the year to October 20, 2023.
Morrisons this week announced that it had pushed down debts to £3.8billion.
This is down by 40% from the £6.2billion after it was taken over three years ago.
The group recently concluded a debt amendment and extension exercise and made a further £200m repayment of debt.
It means that Morrisons has repaid £2.4billion of debt since it was acquired.
In January Morrisons sold its 337 petrol forecourts for £2.5billion to Motor Fuel Group to help bring down its debts.
Meanwhile in September it agreed a 45-year ground rent deal with real estate investor Song Capital.
The ownership of 76 supermarkets will be transferred from Morrisons and leased back.
Which other factories have closed?
In August the UK's second-largest car company was forced to close one of its factories after a dangerous chemical was discovered on site.
In a letter to customers Ford warned that a "small percentage" of asbestos was detected in sections of cement at one of its locations.
Ford suspended operations at the site after the discovery.
A specialist team was called in to conduct a thorough cleaning to remove the fibres.
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Meanwhile earlier this year a British homeware firm closed a huge factory after 123 years of operation.
Johnson Tiles shut it factory in Stoke-on-Trent in April, which led to the loss of more than 100 jobs.
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