An agreement reached between the Mondelez International company and Labour Unions has confirmed that 205 of around 900 jobs at Cadbury will be shed in a bid to make the factory more competitive.
This is part of an initiative to invest £75m in new production lines at the company.
The Unite union has announced that there will be no forced redundancies, and that these 200 job losses will consist of voluntary redundancies. Each redundancy will be paid four to six weeks of salary for every year of work as a pay-off. This will work out as an average of £100,000 for each person made redundant.
Unite has said that this will secure the future of the plant for the next 20-25 years because of the increased efficiency added by the new pipelines. Joe Clarke, Union representative, has said that most people who will leave are over 55 and it will be a ‘good deal’ for them. He added: ‘The individuals that wish to remain employed will be able to do so because the threat of compulsory redundancy has been removed. It’s a good deal from our members’ point of view.’
The remaining staff will have their responsibilities increased and receive 2% pay increases above annual pay award.
Evie Brooks, first year English and French student, commented: ‘it is a real shame that the Cadbury company have had to reduce their staff numbers by so many. But I suppose this is necessary in the competitive chocolate market that the company must face today.’
The factory currently makes a range of Cadbury products, including Dairy Milk, Creme Egg and Wispa.
Mondelez International took over the Cadbury brand in 2010 for £11.5bn. At this time it was known as Kraft, but renamed their brand in 2012.