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Nestle U-Turn On Radical Cost Cutting Pledge

Friday, April 28, 2017


Dozens of MPs back GMB and Unite’s campaign to halt job losses.

Nestle is cutting up to 27% of the Blue Riband workforce [1] as it moves production to Poland – despite promising not to make any ‘radical cost-cutting’, says GMB.

Earlier this month at Nestle’s AGM, CEO Ulf Mark Schneider said many companies are “focusing on radical cost-cutting to deliver higher profits in the short-term”. [2]

He added this approach was “not sustainable”.

Just a few days later the company announced production of the iconic Blue Riband bar would be moving to Poland, while 300 UK jobs would be lost. [3]

Now 31 MPs have signed an Early Day Motion calling on the Government to intervene and work with MPs, trades unions GMB and Unite and the company to avert these job losses now and prevent further job losses across Nestlé.

Eamon O’Hearn, GMB National Officer, said:

“If this isn’t radical cost-cutting I don’t know what is.

“How can Mr Schneider say one thing at the AGM, then announce these shocking cuts just days later?

“Nestle claims these job cuts are not the result of Brexit and have been in the pipeline for a long time.

“If that’s the case, the company has shown utter disrespect to GMB and Unite, as our members – their staff – heard nothing until this week.

“GMB believes regardless of Brexit there are good employers and bad ones – and the bad ones are using leaving the EU as a fig leaf to dust off their cost-cutting plans.”

Julia Long, Unite National Officer for the Food Industry, said:

“Momentum is growing in the campaign to keep these Nestle jobs in the UK – we should be exporting chocolate and not jobs.

“This latest development shows that it is not just the unions fighting for these vital UK manufacturing jobs, but prospective parliamentary candidates and the communities they represent as the general election campaign gathers pace.

“Theresa May’s implication at prime minister’s question time that those workers under threat should go the job centre for help is insulting when she should be exerting maximum pressure to keep these jobs in the UK.”


[1] Impact on site workforce

· York, Yorkshire – 143 jobs out of ~ 616 manufacturing jobs ~ 23% of all manufacturing jobs

· Fawdon, Newcastle/North East – 110 jobs out of ~ 407 manufacturing jobs ~ 27% of all manufacturing jobs

· Girvan, Scotland – 7 jobs out of ~ 49 manufacturing jobs ~ 14% of all manufacturing jobs

· Halifax, Yorkshire – 15 jobs out of ~ 520 manufacturing jobs ~ 3% of all manufacturing jobs

Source HR1 figures

[2] Nestle CEO says 'radical cost-cutting' could backfire for food and beverage companies

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[3] Nestle Plans 300 Job Cuts

Tuesday, April 25, 2017

‘Export chocolate, not jobs’ urge unions.

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