Government urged to help save jobs in Grimsby's food processing industry
THE government is being urged to offer extra support to Grimsby's food processing industry, following the announcement that all 337 jobs at the Kerry Foods factory on Europarc could be lost.
Local MPs and representatives from North East Lincolnshire Council (NELC) are to call on ministers for help to find alternative uses for the 100,000sq ft building on Europarc, if the Irish firm decides to cease production at the site, meaning there could be a glimmer of hope on the employment front, although the 337 current jobs would still go.
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In consultation : Workers at Kerry Foods on the Europarc, Grimsby.
They will also be making the case for Europarc to be included in an extended enterprise zone for Grimsby.
Meanwhile NELC, the Job Centre Plus and the Grimsby Institute are leading efforts to assist those Kerry Foods employees facing redundancy to find alternative employment or training.
Yesterday Kerry Group's director of corporate affairs Frank Hayes told the Grimsby Telegraph that if the company did decide to cease production of frozen ready meals in Grimsby, it would explore other options for the site.
He said: "Our first responsibility is to conclude this review of our existing production lines, but if the outcome of that review is that we have to cease production, then as a major consumer foods organisation we will be in a position to explore other projects for the site."
Council leader Chris Shaw said the authority would do all it could to retain jobs in the area, but added that this could only be achieved through dialogue with Kerry Foods. He said: "We may be able to find someone else to take part of the site but we need them to talk to us. I'm happy to meet with anybody from Kerry Foods to try to move this forward. We will do whatever we can to keep people in jobs in North East Lincolnshire.
"If employers find themselves in the same situation as Kerry Foods they need to talk to us before things get to this stage."
Great Grimsby MP Austin Mitchell described Kerry Foods' announcement as "more like a panic measure than a considered plan".
He said: "To fulfil its responsibilities to our community and to its workforce, Kerry should have made more determined efforts to build the market for its frozen meals. Frozen food sells better in recession. But this sudden closure gives too little time to do that or to find an alternative producer to take over the plant.
"We'll do our best to bring the area and our workforce through but we can't do it on our own."
Cleethorpes MP Martin Vickers said he would do all he could to assist Mr Mitchell and the council in its efforts.
Jason Longhurst, head of development at NELC, said: "We are aware that the Job Centre Plus is having initial meetings with Kerry Foods next week to gain greater clarity over the jobs and skill sets that are potentially being lost. We will be working with our partners to look at how we can support those people to find either new work or training.
"There are job opportunities in other sectors, but the challenge we have got is the sheer size of this announcement."







16 Comments
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by des22
Sunday, February 05 2012, 11:01AM
“That sounds OK Akashwani1201, but it doesn't really work like that does it? All you are doing is bailing out an inefficient company for a short time, unless you intend to keep on doing this every year for this firm and all the others in trouble. The market for their products isn't there any more. They can't produce the stuff cheap enough to make a profit. The answer isn't to bail them out it is to encourage some industry that has a real future.”
by notworthit
Sunday, February 05 2012, 10:05AM
“I am very sorry for anyone who might lose their jobs.
I would also lay the blame at the door of the EU whose ill-considered expansionist policies have brought about the closure of so many businesses. The original EU was like a millionaires club with largely profitable countries sharing markets. Of course that was not enough and they wanted to sell their goods and services to a wider group of consumers. The trouble was that to the less affluent countries these were luxury items and some could not afford their wares.
The simple answer was to create wealth in those countries, invite them to "join the club" which would help them to create wealth (remember the "Tiger Economy" propaganda) and allow easy access to better paid jobs in the richer countries or creating their own industry and therefore employment in their own countries.
When that still did not create enough income for the millionaires club they began to lend vast sums of money that most knew they could never repay. The richer nations also realised that either the industry created in the poorer countries moved production from their own industry and was able to undercut their products and services in the world market or their desperate workforces would flood the richer countries in the hope of a better life. Since there were no jobs the illusion of the greater EU had to be preserved and the army of EU servants started to pass laws forcing recipient countries to provide housing, schooling, healthcare and "benefits". It was a "loss-loss" situation.
The next answer was to create the club's own currency and build up the army of officials that could control the flow of money between members whilst carefully manipulating exchange rates and interest rates.
Germany was the greatest supporter of this, since the first cunning plan had not boosted their income as planned. They had already spent billions upon billions in rescuing the former East Germany from relative poverty and were now faced with doing the same for the majority of the less affluent members of the "New Millionaires Club". Germans as most people will be aware, are terrified of inflation, having historically suffered its effect more that any other western country.
Now the second cunning plan is not working either.
Only a work creation scheme of huge proportions will change things. People should not be allowed to sit at home and do nothing (many of them do not want to do so). The government must "bite the bullet" and create work within our infrastructure for the unemployed.”
by Akashwani1201
Sunday, February 05 2012, 10:03AM
“Will the Government or Council offer to suspend the business rates due from Kerry (con) Foods for 2012-2013.
If Kerry (con) Foods had their business rates (£370,000+) suspended this could be the difference between closure and the site remaining open.
Before you all start saying why shouldn't they pay when I have to, here is some basic maths.
If only 150 of the 337 people didn't pay Council tax from may, the council would lose £150,000
337 people receiving Job seekers for 13 weeks £297,500.
Alternatively how about 150 people for 52 weeks £526,500.
Add to that the rent some of these 337 people will need to have paid by the council, free school meals, free dental, free prescriptions, as well as the money that is going to be spent on training courses etc.
The closure of this site will cost the tax payer far more than the business rates due from Kerry (con) Foods. Please keep in mind that if you have as an average 337 people earning £10,000 per year after tax, that is £3,370,000 (£3.3m) that is not being spent in the local economy. Also Kerry (con) Foods deal with a lot of local businesses who may have to lay staff off. The financial wave of this site closing is of tsunami proportions and should not be under estimated by the local people. You may think that it doesn't effect you, but it will indirectly.
The above figures are estimated but huge, I wonder if the council could provide the real cost of this site closing.”
by Shenfield
Saturday, February 04 2012, 8:26PM
“Europes food town? - this once great brand has been discarded and has been neglected in order to allow the development of wind farm technology and development
When will the powers of this town wake up to the fact that food manufacturing is the bread and butter of this town ( no pun intended ) and that it's resources should be equally shared between these two very very important revenue streams for our town and local people .
As much as it's deeply regrettable that jobs are going to be
Lost in the short term I suspect that in the coming months we will hear of food companies relocating and expanding in our great town once again”
by ukreroofer
Saturday, February 04 2012, 4:41PM
“Europes Food TOWN is quickly diminishing over the Horizon...Its not just the Direct job losses with Kerry foods,and previously the Birdseyes,Findus,Ross,etc etc ...dont forget the ones indirectly related like the suppliers,the small local businesses/companies that stay alive getting trade off the giants,right down to the local window cleaner........ So if its Coldwater next as previously someone mentioned...What next ? will local transport companies and cold store facilities become excess to requirement...
Like every other Town/city that had a thriving industry taken away from it in the past what supported a whole community,beit Docks,Mining,Steel,fishing......left in its place was plumetting crime,drug addiction and unemployment...if i was a young one today i wouldnt want to stay round here...theres nothing”
by Sensetalka
Saturday, February 04 2012, 4:07PM
“Sympathys to those possibly losing their jobs. I think the Government should slash the riciculously generous welfare allowances from the 26k (Max) down to less than minimum wage and give companies struggling some kind of tax relief or reduce tax on fuel which affects absolutely all of us either directly or indirectly.”
by des22
Saturday, February 04 2012, 3:40PM
“How can the government help? Buy up a guaranteed number of frozen meals every week? We know the company has taken the workers for a ride but to be fair even last year it was pretty obvious that the frozen food market was in trouble and that this firm would be lucky to keep a factory open here.
The industry has changed since we had the big boys in GY employing thousands on the fish finger lines but the council hasn't worked hard enough to encourage new industries. We keep jumping on bandwagons like the wind farms that are never going to be a long term answer. What we desperately need is a big manufacturing works that's likely to stay around. Then others will follow. If only our local politicians could have got the Nissan plant here years ago when they had the chance. But food firms? That industry belongs to the cheap labour market now.”
by roadrunner74
Saturday, February 04 2012, 2:31PM
“So much for Grimsby being Europe's food town, More like laughing stock”
by freedom107
Saturday, February 04 2012, 2:23PM
“cold water is next i hear 3 months time”
by bbjo1975
Saturday, February 04 2012, 2:00PM
“Just wanted to offer my sympathies to everyone who is losing their jobs. Grimsby is going down the pan there soon will be nothing left here. Even Tescos are giving out letters asking staff if they want to permenately cut their hours. I'm moving there is nothing here for me and my children”