A Cornish meat factory is under threat of closure with the loss of 270 jobs – and Brexit is again being blamed.
Bosses at West Midlands-based Tulip Ltd are considering closing the plant in Bodmin – unless a rescue deal can be obtained - and a 45-day consultation has started with employees.
They will learn their fate on December 9, 2019, but already the Unite union is saying the closure will send “shock waves” though the country and is a major blow to its fragile economy.
The union said Tulip has cited “political uncertainty”, usually seen as a shorthand for Brexit, as a factor.
The company has only told Business Live the factory is making “significant losses” and stressed it is still trying to wrap up a rescue package which could save the plant.
But this looks far from likely to come off and Unite regional officer Deborah Hopkins said: “This is another blow for Bodmin – Tulip used to be one of the primary employers in Bodmin and the local community will suffer greatly from these losses just before Christmas.
“This gives us a measure of the impact of continuing political and economic uncertainty in Cornwall, causing the ongoing shrinkage of our manufacturing economy.
“This is another shock wave to the already battered Cornish economy.
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“Tulip has described political uncertainty as a cause for its problems and Bodmin will pay the price for this.”
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Tulip has 17 production facilities around the 海角视频, including another at Pool in Cornwall and a HQ in Warwick, and in August 2019 was bought by Pilgrim’s Pride Corporation for £290million.
Tulip is the largest pig producer in the 海角视频, with nearly £1billion in annual sales and more than 7,000 staff nationwide.
Tulip serves retail and foodservice customers and has an annual turnover of more than £1billion.
The closure of the Bodmin plant comes in the same year the Duchy lost Kensey Foods’ factory at Launceston.
The custard tart and desserts business, part of Samworth Brothers which owns Ginsters, employed 650 people at the 11-acre site at Pennygillam Industrial Estate.
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In March 2019, St Merryn Foods, on the Victoria Industrial Estate in Roche, St Austell, announced it was axing 200 workers.
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“The relentless loss of jobs from Tulip in recent years reflects other job losses from food and drink processing across Cornwall, primarily in the middle and east of the county, at a time when wages are stagnating,” said Ms Hopkins.
“This problem is compounded by underemployment and in-work poverty which are escalating.
“Bodmin has some of the poorest areas in the country so this further loss of work and incomes to the town are a cause of deep concern.
“The families in Bodmin affected by this will struggle to find work that provides security for their families and an income that will pay the bills.
“What we are seeing is workers being made redundant in the food processing sector and then they are shunted to another similar, often low paid, job – and then that site closes.
“It is a terrible downward spiral that erodes hope.
“Bodmin’s economy specifically and Cornwall’s more generally deserve investment and the opportunity to grow, rather than the current diet of declining incomes and lost jobs.
“Unite will continue to work with our members at Tulip, which has a record of not engaging with trade unions, to support them as they face this new blow to the county’s economy.
“We would welcome the opportunity for constructive talks with the management at Tulip to see what can be done to keep this plant operating.”
Tulip management has confirmed it will be entering into consultation with employee representatives at its Bodmin facility over the future viability of the site.
A spokesman said: “The site has been operating at a significant loss for several years and while it remains a well-invested site with industry-leading capabilities, it is unsustainable to maintain operations under the existing business model.
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“Closure is not a foregone conclusion and Tulip Ltd is seeking to galvanize employees, customers and suppliers to coming together to agree a viable plan for the sustainable future of the site.
“However, unless we can secure a joint recovery plan with our strategic partners and employees, we cannot continue to operate while making such significant losses.
“Therefore, we have begun a 45-day consultation process over proposals to cease production at the site, potentially putting 270 roles at risk of redundancy. We expect the consultation period to end on December 9, 2019.”