Hope for 359 sacked at busy Findus factory

Jan 17 2009 by Paul James, The Journal

THE fight to save nearly 400 Findus jobs began last night after almost all the factory’s workforce were made redundant.

Administrator Zolfo Cooper made 359 staff redundant at the Longbenton factory, keeping on only 28 workers to help with customer relations, stock sales, maintenance and security.

A response group was immediately set up by North Tyneside Council to help find the staff new jobs, but the administrator said it remained hopeful it would find a buyer for the site.

Run for Findus by Newcastle Production, the factory suffered a severe blaze earlier this month which shut down all production and caused £20m damage.

But last night Newcastle Production’s managing director Vidar Engen said: “I am very hopeful that many of the employees will be able to reapply for their jobs.

“Today the administrators have sent in cleaning teams, so that is a good sign.

“There are a lot of good skills. This was a very good factory and I think there will be interest from companies wanting to take it over.

“We had to make people redundant because the damage from the fire was so bad there is no hope of any income for several weeks and maybe longer. We are still talking with the insurers about what they can do.

“It has been a tough day for all of our staff, but I hope many of them could be back working here at some point.”

Zolfo Cooper partner Simon Wilson said: “We have been encouraged by the level of interest shown by prospective purchasers of Newcastle Production at this early stage of the administration process, and we are continuing to explore all options for the business. We remain confident that a sale can be achieved.

“However, as a result of a fire on site prior to our appointment as administrators, the facility is currently closed whilst damage and options are assessed. Unfortunately this means that we have had to make the majority of the workforce formally redundant.

“We are maintaining an open dialogue with all staff, the brand and licence owners, suppliers and customers of Newcastle Production at this time and are grateful for their support.”

North Tyneside Council is bringing together organisations such as development agency One North East, Jobcentre Plus and Business and Enterprise North East to help the affected staff.

All staff affected are to be invited to a meeting at the factory on Thursday to be briefed by the response team.

North East Chamber of Commerce spokesman Mike Parker said: “It’s extremely disappointing news and a devastating situation to happen to this company during an economic downturn.

“The crucial thing is to help the people who have lost their jobs to find the opportunities that are out there. There are still companies taking on staff, depending on them having the skills.”

The GMB union’s Chris Preston said: “This is devastating news and is most depressing given that the factory had a full order book. GMB members who are losing their jobs are victims of the private equity craze and the credit crunch that resulted from irresponsibility in the financial markets.

“This is a bankers’ recession. These bankers need to be made to account for the devastation that they have caused to the lives of ordinary families up and down the country.”

North Tyneside elected Mayor John Harrison said: “This is a disappointing announcement for the staff of Findus and the wider community.

“I can say that the council have been encouraged by the interest already shown by prospective operators of this business and we will work with our partners to ensure that every possible avenue is explored.”

One North East director of business and industry Ian Williams said: “The announcement by administrators is very disappointing and the priority of public sector partners is to provide help to staff as quickly as possible.”