Around 900 jobs are set to be axed after Kerry Foods announced the closure of one of its factories following the loss of a key contract.
The firm, which makes ready meals for some of the biggest high street names in the UK, has announced that its Burton factory, in Mosley Street, will cease production on August 30.
It comes after Tesco, which its one its key customers, revealed last October that it had terminated its contract with Kerry Foods.
The news is a hammer blow for Burton as the factory is the town’s largest employer.
The announcement has been met with anger from unions, with Unite describing it as a ‘calamity for the town’.
It said it had already been in touch with brewer Molson Coors - Burton’s second largest employer - about finding alternative employment for affected Kerry Foods workers.
It also said that it will be meeting Kerry Foods management to discuss “enhanced redundancy packages” for its members.
Rick Coyle, the union’s regional officer, said: “This is a calamity for Burton as Kerry Foods is the town’s biggest employer.
“It is heart-breaking for the workforce, their families and, more widely, a crushing blow for the regional economy.
“The closure is a result of Kerry Foods losing the contract to supply supermarket giant Tesco’s with ready-made meals, which was 90% of its business. Kerry Foods tried to find alternative markets and customers, but to no avail.
“The problem going forward is that there are not that many well paid jobs in Burton and the vicinity to replace those that will be lost at the end of August.
“We have been in touch with Molson Coors to explore employment opportunities there. Also, we will help arrange a jobs fair at the site and assist our members with their CVs and advice on updating their skills.”
Meanwhile, local MP Andrew Griffiths said he would be meeting with Business Secretary Greg Clark today to discuss what can be done to save the factory and help the workforce.
He said: It’s my priority to look at whether any other businesses are interesting in taking over the site (as a food production operation) or doing something different with it.
“Secondly, we need to look at what can be done to support the workforce there back into jobs.”
In a statement, Kerry Foods said: “The company would like to extend a sincere thank you to all our Burton colleagues for their hard work and commitment and our priority now is to support all employees affected during this time.”
