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MP blames supermarket tactics for loss of Shropshire dairy jobs
Wednesday 24th August 2011, 8:00PM BST.
Cut-throat tactics used by the big supermarket chains are partly to blame for the loss of 350 jobs at a dairy firm, a county MP claimed this afternoon.
Daniel Kawczynski, MP for Shrewsbury & Atcham, said it was vital a new regulator was put in place by the Government to monitor the behaviour of supermarkets after planned job losses were announced by Uniq at Minsterley.
He said he believed some were “squeezing” suppliers, forcing them to cut jobs or go out of business.
He added: “I have been calling for a long time for a regulator for supermarkets because they are the only thing that isn’t properly regulated in this country.
“Supermarkets make billions of pounds every year and yet they squeeze in a cut-throat way suppliers like Uniq, driving down purchase cost so they are put continuously into a difficult position whilst they maximise their own profits.
“Uniq is a high quality product operation that is streamlined and efficient and has highly motivated staff.”
Mr Kawczynski said he would be requesting a meeting with bosses at Uniq to discuss the situation and would invite local councillor Tudor Bebb to attend.
Production of the desserts range in Minsterley will continue until next summer. The site will continue to make Cadbury chilled desserts on behalf of Muller.
Bosses at Uniq say the firm’s priority will be to work with staff who face losing their jobs to find work.
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Daniel Kawczynski is spot on! The loss of jobs at Uniq is the direct result of the loss of a huge contract to supply one of the top three supermarkets in the country. The supermarket negotiators were ruthless and insisted on a price which was below the cost of production and wanted BOGOF promotions included as well. Uniq naturally had to refuse and tried to find alternative buyers, but these were insufficient to compensate for the loss of a contract of that size. Consequently, 350 people have lost their jobs due to “free market enterprise” or as many people would call it “supermarket greed”.
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Regulation of the free market ?!
Ruddy Communist.
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the mp is quite right, farmers producing milk at 29p a litre, supermarkets paying 24p a litre. result farmers and dairies producing milk at a loss, result farmers selling up, dairies losing money and creating redundancies.
1 supermarkets should be paying 36p a litre to farmers
2 supermarkets should cease selling milk as a loss leader and causing the problems.
until they learn, all supermarkets paying less than 36p a litre for their milk should be boycotted. it is the only action these large businesses understand.
let us hear it for our farmers and local shropshire dairies. floreat salopia!
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And so sayeth Shop Steward, NUT, Shropshire Brigade, Dairy Division.
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