Fears for Wigan's £140m Heinz ketchup deal

Bosses of the international company say they are looking at other options after staff over-rode a union recommendation to accept contract changes.

It was with a huge fanfare in June that parent company Kraft Heinz announced that it was looking at producing the likes of mayonnaise and its iconic tomato ketchup brand at the Kitt Green plant.

The company said it would be its biggest investment in two decades in one of its existing plants outside the United States and could also bring up to 50 new jobs to Wigan.

But things have not gone as smoothly as planned, although there are conflicting accounts of what has happened.

Wigan MP Lisa Nandy has been working with both union representatives and management to come to an agreement that suits all parties and means that important new investment rejuvenates this key Wigan employer.

A member of staff contacted wigantoday anonymously to say that the workers were told it was conditional that they accept a pay cut - for some up to £70 a week - in order for the sauce production deal to go through: something which both Heinz and the Unite union deny.

Unite, which says the revised contracts “involved a few amendments for shift patterns,” confirms that it recommended that they accept the proposals but the workers voted it down.

The worker said it then “went quiet for a bit” and then staff were told sauce production wasn’t coming to Wigan after all - “in other words it was our fault for not accepting these poorer terms and we were going to suffer for it.”

But then he said 26 staff at Heinz’s own distribution centre were offered voluntary redundancy or the chance to move to other departments with the idea that sauce production would be moving to that part of the site.

The worker said: “We think that the idea is that they will then bring in people from outside - perhaps the Wincanton distribution centre next door who generally earn less than those at the Heinz factory - to work in the sauce operation on lower rates of pay.

“So they get their cheaper deal after all.”

A spokesperson for Unite said: “A pay cut was never proposed - only a few amendments for shift patterns.

“However, Unite is still in consultation and discussion with the company in relation to the proposed investment in the new lines.”

A Wigan Post source within the company said: “There are real worries that if the workers don’t accept these terms that things could go wrong in the long term.

“Staff may think they can ride that out but they need to look at the bigger picture. If Heinz commits to this project at Kitt Green then it could secure the future of the factory and lots of jobs for years and years to come.

“Looking at it from the other side: the factory has been there for many decades, some of it is ageing and unless it gets new investment, there may come a time when the company might decide to take its business elsewhere. That is a real worry.”

And a spokesman for Kraft Heinz said: “Since Kraft Heinz announced plans for a proposed investment of £140m to make Kitt Green Fit for the Future and to support the long-term strong presence for our business in Wigan, an internal ballot was held to vote on a package of measures.

“These measures underpinned the proposed investment and progress towards modernised working practices in line with best practice in manufacturing.

“There were no pay cuts that were part of the terms and conditions changes that were proposed and balloted upon by employees.

“There was no threat but a democratic vote offered to our employee population to accept a significant investment into the site in exchange of modernising ways of working.

“The proposals were fully recommended by all Unite stewards on site, including at national level given the significance of the investment, long term security for the site and the creation of jobs.

“Disappointingly, the result was a negative vote which has resulted in the investment plans being reviewed and other sites in the UK and our European manufacturing network assessed for the viability to receive the investment instead of Kitt Green. This work is ongoing.

“The recent on-site communication of outsourcing further parts of the logistics operation has no relationship to the investment.

“The proposed outsourcing opportunity follows a review of our operational alignment in response to changing customer demands and requirements. A 30-day consultation process has now been initiated in line with our agreed ways of working with the Union.

“Subject to the proposals going ahead, all 25 employees affected have been given the opportunity to take voluntary redundancy or an opportunity to be deployed into alternative roles within the Kitt Green factory.”

Ms Nandy said: “I am keen that the management will be able to deal with the outstanding concerns of the workforce who are one of our strongest assets and we need to protect them. But we need to get new investment into the site so that it can go from strength to strength.”

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