Coca-Cola in threat to halve Morpeth staff

Dec 13 2008 by Graeme King, The Journal

JOB losses are threatened at Northumberland drinks firm Waters & Robson just a month after Coca-Cola bought the near century-old business.

The American multinational is said to be consulting 49 of the 91 employees in Morpeth about restructuring, despite previously saying it intended to invest in staff.

The Journal has been told employees at Waters & Robson, which produces Abbey Well mineral water, were called to a meeting on Thursday to start the consultation process and one source said “most of the office staff” and “all the sales team” were expecting to be sacked.

The Northumberland business community was shocked last month when £19bn turnover Coca-Cola said it had bought £11m turnover Waters & Robson and there was some concern about the US company’s intentions.

But promises of investment from Coca-Cola Enterprises GB boss Simon Baldry placated those who feared for the future. Mr Baldry said then: “We are looking forward to working with employees and the local community to develop the business.

“We will be investing in the company’s employees and site infrastructure to ensure bottled water production at Morpeth goes from strength to strength.”

But exactly a month after the deal was announced, job cuts are on the agenda.

A Coca-Cola spokeswoman said: “Coca-Cola Enterprises (CCE) is considering how best to integrate the Abbey Well business into its existing operations. CCE is a responsible employer and has started consultation with Abbey Well employees on proposals regarding the best way to achieve this.

“No decisions will be taken until the consultation process is completed. The integration could mean job opportunities for some Abbey Well employees; however, there may be job losses.”

One worker who contacted The Journal yesterday said: “We were stunned. The mood is terrible. We had assurances they weren’t going to do that. They were going to keep the staff. Now they’re going to pay off all the staff apart from the factory staff and they’re on about bringing their own drivers in. They’re saying it will be after Christmas, but people are frightened to talk in case they lose their jobs before then. Nobody knows what’s going to happen now.”

TUC regional secretary Kevin Rowan said: “I think the workers will feel very let down. They will have been anxious about the takeover and they have been given the impression this was something for the long term.”

Morpeth Town Council chairman Coun Ken Brown said: “Morpeth has had well publicised problems in recent months that are having an effect on the local economy and, against the backdrop of the credit crunch, this news from Coca-Cola is not welcome.

“The recent good news of the possible involvement of Abbey Well in the 2012 Olympics will clearly be at a significant cost to local jobs for the benefit of a global brand.”

Coun Brown said the town council would work with the borough and county councils to try to influence Coca-Cola’s talks with its workforce.

Nobody from Waters & Robson was available to comment yesterday.