UNION leaders have welcomed an announcement that tea maker Twinings will not be handed £10m in European cash to move jobs abroad.

Workers in North Tyneside have said that while they know their jobs will still go, they are at least satisfied the firm has been told it will no longer be getting the redevelopment cash. Twinings sparked controversy last year when it was revealed their plans to lay off 286 staff and open a new factory in Poland, was built around a £10m European Commission grant.

The firm has always denied that it announced job losses based on the grant.

A review of the money by the Commission resulted this week in the tea maker announcing the Polish Government would not now be using its share of European cash for the new factory.

Jayne Shotton, the Usdaw union rep for the factory, said the news was a warning for firms thinking they can walk all over staff.

She said: “It is what we expected to be honest.

“We did not think that losing £10m would change their mind on the closure of our factory, but we wanted this pursued on behalf of the members to show that this is wrong and should not be tolerated.

“This will hopefully show other firms that they can’t just up and move with taxpayer cash.

“We met with MEPs and Commission staff to talk about the grant but also to talk about the other problems facing firms if this was allowed. We want this to set an example.”

European Liberal Democrat MP Fiona Hall said last night that strict EU rules prevent funds being used to pay for relocation between member states.

The Commission said the firm failed to prove the move was regeneration, rather than relocation.

She added: “I welcome the decision to withdraw the grant. EU rules are clear that funds cannot be used to relocate jobs.

“It is reassuring that the Commission is willing to act when it considers money is potentially being misused. Unfortunately, the decision does not help the 260 people who will lose their job when the North Tyneside plant closes. It is vital that we now focus efforts on ensuring there are new jobs for these people to go to.”

Mum-of-two Ollie Moat, a machine operator from North Shields who lost her job at the factory, said: “I’m over the moon. It is a drop in the ocean for them maybe, but it is a great sign to other companies that want to just dump jobs and relocate.

“Even if they had lost this earlier then it would not have changed their plans, but this a great comeuppance for them.”