Closure plans put 542 jobs at risk at food processing plant

All 542 jobs at food processor Pilgrim’s UK’s Ashton-under-Lyne factory are at risk after the group announced plans to close it in a bid to return to growth.

Pilgrim’s UK says it is Britain’s biggest higher welfare pig farmer and producer of sustainably produced quality pork products.

It said the UK pork sector continues to face the most significant challenges in its history, with the UK sow herd having contracted by around 15% and loss-making farmers leaving the industry due to a sustained period of high production costs and lower pig prices.

At the same time, an increasing and ongoing reliance in the UK on cheaper, lower welfare imports from the EU and post-pandemic recovery challenges within certain markets has negatively impacted UK production.

The initial phase of Pilgrim’s UK’s review included the closure of its Coalville site and the imminent closure of the Bury St Edmunds site, as well as the introduction of a four-day week at Ashton in September 2022.

To continue to optimise the business’s operational footprint, Pilgrim’s UK executive team has now proposed to close the Ashton site and transfer existing operations to its facilities in Spalding, Westerleigh and Bromborough.

Rachel Baldwin, vice president of human resources, Pilgrim’s UK, said: “The decision to propose the closure of our Ashton site has not been taken lightly and we have made every effort to explore alternative options.

“A key part of our work to return to growth includes ensuring we fully optimise our operational footprint and the age and location of Ashton within a densely populated area means that there is no feasible opportunity to modernise or grow the site.

“As a result, these proposals are, unfortunately, essential to ensure a sustainable future for our team members across the UK.”

While all 542 Ashton staff are at risk of redundancy, the proposals will create 90 additional roles split between Westerleigh, Spalding and Bromborough.

The business will now enter into a period of collective consultation with site union and employee representatives.

Pilgrim’s UK said full support and guidance will be provided to anyone at risk of redundancy, including support in seeking alternative roles both inside and outside of the organisation.