160 jobs at risk at Bernard Matthews

SAM WILLIAMS

05 February 2010

Up to 160 jobs will be lost at Bernard Matthews as part of an drive to improve efficiency.

The turkey producer, one of Norfolk's biggest employers, today announced a consultation with staff in its frozen whole bird operation in Great Witchingham which could see a reduction of 160 posts over the next 12 months.

The redundancies will affect salaried and process workers at the South Site at the Norfolk plant as production of frozen whole birds is relocated to more modern premises in Holton, Suffolk.

The announcement follows a review which warned frozen whole bird production was unprofitable, and comes half way into a four-year strategy aimed at achieving profitable growth at Bernard Matthews.

Despite sales of £335.5m in 2008 the company reported a modest operating profit of £857,000, after an operating loss of £9.6m the previous year.

Jeff Halliwell, Bernard Matthews UK managing director, said: “We are two years into a four-year strategy to return the business to profitable growth and while the company's results are moving in the right direction, we are still far from the levels of returns the business should be making.

“Key to this is the fact that the frozen whole bird part of our business is currently unprofitable.

“Rather than exit the frozen bird market we have carried out a detailed review of the operation, and have developed a plan that ensures this part of the business returns to profitability.

“The plan requires transferring the production of frozen whole birds to our Holton site in Suffolk. The move cannot be completed until early 2011, but it is our duty to explain the rationale and consult with staff and the union as early as possible.”

He said the company was also proposing a small number of redundancies in other parts of the business to improve efficiency and profits, adding: “We appreciate that this consultation process may cause a degree of uncertainty for our staff, and we will provide staff with regular updates with regards to any further developments.”

Ivan Crane, regional industrial organiser for union Unite, said the announcement was “disappointing” and “a blow” to the local jobs market, adding: “We will be entering immediate talks with the company to explore alternative options to redundancy.”

The company, which employs about 2,200, saw £56m wiped off the value of its brand in 2007 following a bird flu outbreak.