NESTLÉ has hinted that its decision to close its facility in Fawdon is not connected to Brexit or supply costs after revealing that operations at the North East factory would wind down in 2023 – leaving close to 500 without a job.
The confectionary giant announced proposals yesterday (February 2) to shut its site near Newcastle over the next 12 months, in favour of moving production overseas, which will see its products made in the Czech Republic, Poland and Bulgaria instead.
However, despite suggestions that Brexit was behind the move – The Northern Echo understands that neither leaving the EU or supply costs are factors in the decision.
Read more: Nestle to cut 500 jobs in the North East over the next 12 months
Instead, the changes by Nestlé are thought to be motivated by “making manufacturing more efficient as the production at Fawdon will be absorbed in other, existing factories” that will see production moved to Halifax, West Yorkshire.
Due to a consultation ongoing between now and April this year, which will see talks between the company and unions progress to see if there can be a resolution, Nestlé have said that they can’t provide an official statement, but did release an initial comment after yesterday’s announcement.
It read: “The consultation around the changes we proposed in April 2021 is still ongoing. We said from the outset that we wanted to provide adequate time and space for these discussions, and it is only right that they are held directly with our employees and Trade Unions and not in public.
“It remains a priority to support our people and their families through this process and we thank everybody for their patience. We will provide an update once the consultation is complete.”
In the aftermath of Nestlé’s decision to move production from Fawdon to Europe, politicians in the region have called the news “motivated by greed” and a “devastating blow” for the North East.
Ian Lavery, MP for Wansbeck, said: “This is desperate news for the workforce at Nestlé. A company well established in the region and making profits.
Read more: Teesside-made Novavax Covid vaccine finally approved for UK use
“The fact that these jobs are being shipped off to Eastern Europe is a cause of great concern. We have a company with a top-quality product a huge international market and a fantastic workforce moving in the name of greed.
“I still hope at this stage the trade unions can arrive at a deal which would prevent this from happening.”
Meanwhile, Trade Unions are equally disappointed in Nestlé’s decision – branding the company “unacceptable” and calling on the global brand to rethink its strategy.
GMB national officer, Ross Murdoch, said: “Closing this profit-making site and shifting production to Europe is completely unacceptable.
“This will have a devastating impact on workers and their families.
“Meanwhile transporting finished products from sites in Europe back to the UK – where they are consumed – will result in significant additional road and sea miles, increasing pollution and environmental damage.
Read more: Remains of WW2 airmen found near Chop Gate in North Yorkshire identified
“GMB and Unite will now speak to members in Fawdon and find out what they want to do next. We will give them whatever support and resources they need to fight this.”
Here’s some more of the reaction to Nestlé’s announcement after The Northern Echo approached every North East MP and several Trade Unions for comment. This is what they had to say:
Joe Clarke (national officer of Unite)
“Unite and its membership are bitterly disappointed that alternative proposals to keep the site within Nestlé Fawdon open have been rejected.
“We are currently seeking further information in relation to the proposal, and we will enter into dialogue on next steps imminently.”
Catherine McKinnell (MP for Newcastle North)
“Chocolate manufacturing has a long history here in Newcastle. We’ve produced some of the country’s best loved confectionary brands since the 1950s, and the Fawdon factory has been at the heart of the community here ever since.
“This closure is devastating news for Fawdon, for the wider community, and most of all for the workers at the factory. My thoughts are with the workforce and their families – supporting them must remain the focus of all future discussions.
“I know the decision will also affect many outside the factory too – the shops and businesses who rely on the traffic its workforce brings.
“The timing of this decision is especially cruel as we emerge from the economic devastation of the pandemic and families are faced with a cost-of-living crisis. Nestlé is the world’s largest food company and the plant here in Fawdon is profitable, so it’s hard to believe they need to remove so many jobs in Newcastle to stay competitive.”
Kate Osborne (MP for Jarrow)
“It is extremely disappointing to see that Nestlé are still pushing ahead with the closure of their Newcastle factory threatening nearly 500 good, unionised local jobs.”
“I have constituents who work for Nestlé and for them to be losing their jobs during these very uncertain times is disastrous.”
“I offer my full support to the members of both the GMB and Unite in their continued fight against the closure and hope that all parties can come to a fair solution for all concerned.”
Alex Cunningham (MP for Stockton North)
“This is incredibly disappointing news from Nestlé that will not only have a devastating impact on hundreds of North East workers and their families but will end sixty-four years of confectionary making on the Fawdon site.
“Despite repeated attempts by Unite and GMB to get the company to look at alternative options, Nestlé have clearly decided that the business case of moving production to Europe outweighs the anxiety this decision will cause to so many. There are also questions about the environmental impact of moving production to Europe only to transport it back to the UK.
“I’d join with GMB and Unite representatives and urge Nestlé to get back round the table and rethink this decision.”
Sharon Hodgson (MP for Washington and Sunderland West)
“It’s devastating. The closure of the historic Fawdon plant will hurt Nestlé workers’ pockets just as the Tories’ cost of living crisis hits.”
Keep up to date with all the latest news on our website, or follow us on Facebook, Twitter and Instagram.
You can also follow our dedicated County Durham Facebook page for all the latest in the area by clicking here.
For all the top news updates from right across the region straight to your inbox, sign up to our newsletter here.
Have you got a story for us? Contact our newsdesk on newsdesk@nne.co.uk or contact 01325 505054
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereLast Updated:
Report this comment Cancel