JOB cuts are to be implemented at a leading food manufacturing plant whose own future has been given a major boost.
Cadbury’s owner Kraft Foods has revealed its Chirk plant it set to have staffing levels reduced as part of an anticipated 200 job cuts over the next two years, shared with sites in Birmingham and Herefordshire.
The likely number of possible job losses in Chirk is unknown but the company has said it hopes to avoid compulsory redundancies.
But yesterday’s announcement also coincides with news the factory is to receive £3.4million investment, which the company and community leaders have hailed as good news for the future of the plant after a period of uncertainty.
Chirk councillor Ian Roberts, who is also mayor of Wrexham, said: “This is a big employer in this area and there is always concern when you hear of possible job losses. However, it is pleasing to see the investment being made at Chirk.
“Two years ago it looked like the factory could close so the future now looks a lot more secure.”
Kraft has said its £3.4 million investment at Chirk is intended to help cocoa beverages be brought back in-house from a third party supplier.
Barry Roberts, spokesman for the union Unite, said staff have been briefed about the announcement and its likely implications. He said: “We are still looking at the detail. It appears there will not be any compulsory redundancies which is good news.
“However, there are likely to be 200 jobs lost in local communities at a time when finding new positions is difficult. We hope it will remain the case there will be no compulsory redundancies.”
Mr Roberts said he anticipated talks would be held with the company about the job situation shortly.
The proposed job cuts are to be implemented alongside the creation of 20 new positions at Kraft’s Sheffield plant.
A spokesman for Kraft Foods said: “The £44million investment in chocolate manufacturing, of which £3.4 million was announced in early 2011, will benefit Bournville in Birmingham and plants at Chirk and Marlbrook, in Herefordshire.
“Amongst other changes, the wide-ranging programme will combine state-of-the-art technology and new ways of working to increase overall output, improve energy efficiency and bring some production in-house.
“Kraft Foods expects approximately 200 roles in chocolate manufacturing to be affected by changes resulting from the investment programme. In 2012 and 2013, the company will work closely with employees and their representatives to minimise the impact through redeployment and a managed voluntary redundancy scheme.”
Two years ago there was a high level of uncertainty over the future of the plant after Cadbury’s was sold to Kraft in a £11.5 billion deal.
The fears of 250 staff in Chirk were heightened by the closure of a plant in Bristol, but no similar action was taken in Chirk.
Labour AM Ken Skates said: “I am concerned some important jobs may be lost at the Cadbury factory over the next two years. While the announcement of a new package of investment at the Chirk site is welcome, any job losses are bad news for the people who work there and the local area.
“I will be working with the company to ensure there are no compulsory redundancies and as many people are offered redeployment as possible.”
For the Conservatives, Mark Isherwood AM, Shadow Minister for North Wales, said:
“In light of the fragile nature of the North Wales economy Welsh Labour Ministers need to accelerate their plans to stimulate growth in the Welsh economy.”
And Antoinette Sandbach, North Wales AM, added: “The Welsh Labour Government should now prioritise the introduction of Enterprise Zones and cuts to business rates to help create the conditions for economic growth and job creation.”
Aled Roberts, Welsh Liberal Democrat AM for North Wales, said: “Cadbury has been a valued employer in the Wrexham area for many years, and Kraft gave an undertaking in March this year that there would be no forced job losses for a period of two years.
“Kraft must deliver on their commitment that this process will go ahead on the basis of voluntary redundancies and retirements only and make sure that their workers are kept fully informed of any further developments in the weeks to come.”