Following the loss of its £100m fish processing contract with Sainsbury’s earlier this year, Young’s began a formal consultation process with employee representatives on the possibility of closing the two facilities, which would have meant the loss of up to 900 jobs.
An ‘Alternative Option’ plan was developed during the consultation process and involves retaining around 250 jobs.
Under this plan, Young’s will keep the Spey Valley site at Grantown-on-Spey open, retaining the traditional smoking facilities at the site. The Fraserburgh Watermill Road site will stay open, but with a reduced operation focused on hot and cold smoked ready-to-eat products.
The manufacture of other products will gradually transfer to alternative Young’s sites in Scotland and England by May 2016. The phasing of this plan is subject to consultation with Young’s retail customers.
“Following extensive review, consultation with employee representatives and engagement with all interested stakeholders, we are now confirming our company’s decision to keep open our Fraserburgh Watermill Road and Grantown-on-Spey facilities,” said Pete Ward, chief executive of Young’s Seafood Limited.
“This follows the decision by a major customer to transfer some of their business to a Rosyth-based supplier. We recognise the importance of the Fraserburgh and Spey Valley factories to their local communities and we are moving forward with a plan that will retain jobs at both of the sites. This decision has not been taken lightly and we’d like to say thank you for your continued dedication and commitment to the site during this challenging time. We would also like to say thank you to all other stakeholders, organisations and agencies that have worked constructively with Young’s to develop our plan.”
Young’s said that it has engaged with politicians, stakeholders and other interested parties and will continue to do so as part of the consultation. The company will also continue to consult with employee representatives on the exact number and phasing of redundancies, which are likely to take place in early 2016. Enhanced redundancy terms have been agreed for those affected with employee representatives, including help with finding alternative work.
