Fears over Wigan’s £ 140m Heinz ketchup deal

The Kit Green Heinz plant is one of the largest food factories in the world

Bosses at the international company say they are looking for other options after employees overwrite a union recommendation to accept contract changes.

With great fanfare, parent company Kraft Heinz announced in June that it was considering producing mayonnaise and the iconic brand of tomato ketchup at the Kitt Green plant.

The company said it was the largest investment in any of its existing plants outside the United States in two decades and could also create up to 50 new jobs for Wigan.

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Kraft Heinz employs hundreds of workers at the Wigan plant

But things did not go as smoothly as planned, despite conflicting reports about what happened.

Wigan MP Lisa Nandy has worked with both union officials and management to reach an agreement that is fit for all parties and means important new investments rejuvenate this important Wigan employer.

An employee contacted wigantoday anonymously to say that workers had been told they would accept a wage cut – for some up to £ 70 a week – to allow sauce production to be completed: something both Heinz and the Unite union do deny.

Unite, which says the revised contracts “included some changes to shift patterns,” confirms that they recommended that the proposals be adopted, but workers voted against.

Lisa Nandy has worked with both union representatives and management

The worker said it “went quiet for a while” and then the staff was told that the sauce production was not coming to Wigan after all – “in other words, it was our fault that we did not accept these worse conditions and we would suffer for it “.”

But then he said 26 employees at Heinz’s own distribution center were being offered voluntary layoffs or the opportunity to move to other departments with the idea that sauce production would be relocated to that part of the site.

The worker said, “We think the idea is that they’ll bring people from outside – maybe the Wincanton distribution center next door, who usually earn less than those in the Heinz factory – to lower wages for the sauce operation to work.” .

“So that they can get their cheaper offer.”

A Unite spokesperson said, “A pay cut has never been proposed – just a few changes to shift patterns.

“However, Unite is still in consultation and discussion with the company regarding the planned investment in the new lines.”

A Wigan Post source within the company said: “There are real concerns that if workers do not accept these terms, something could go wrong in the long run.

“People may think they can do it, but they need to look at the bigger picture. If Heinz is committed to this project at Kitt Green, it could secure the future of the factory and many jobs for many years to come.

“If you look at it the other way around, the factory has been around for many decades, some of them are aging, and if no new investments are made, the time may come when the company decides to move its business elsewhere. That’s a real worry. “

And a Kraft Heinz spokesperson said: “As Kraft Heinz announced plans for a planned investment of £ 140 million to make Kitt Green fit for the future and to support the long-term strong presence of our business in Wigan, an internal vote has been taken vote on a package of measures.

“These actions underpinned the proposed investment and progress towards modernized labor practices in line with manufacturing best practices.

“There were no pay cuts as part of the changes to terms and conditions proposed and voted on by the staff.

“There was no threat, but a democratic vote by our employees, who accepted a considerable investment in the location in exchange for the modernization of the way of working.

“The proposals were unreservedly recommended by all Unite stewards on site, including at national level, due to the importance of the investment, the long-term security for the site and the creation of jobs.

“Disappointingly, the result was a negative vote which resulted in the investment plans being reviewed and other UK locations and our European manufacturing network assessed for profitability in order to receive the investment in place of Kitt Green. This work is in progress.

“The latest on-site communication to outsource further parts of the logistics operation is not related to the investment.

“The proposed outsourcing option follows a review of our operational alignment in response to changing customer needs and requirements. A 30-day consultation process has now started, in line with our agreed way of working with the Union.

“Subject to the proposed proposals, all 25 affected employees have the option of voluntarily firing or taking on alternative roles within the Kitt Green factory.”

Ms. Nandy said, “I am very keen that management will be able to address the pre-eminent concerns of the workforce, which are one of our greatest assets and we must protect them. But we have to make new investments in the location so that it can become stronger and stronger. “

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