Tulip Contract Loss Risks Jobs
The loss of the contract being now a definite given means that the meat processing firm has had to take action. They have confirmed that they will be undertaking a collective consultation process with the site works committee over the 464 jobs that are now at risk. With positions ranging all areas of the spectrum, from operative positions like these right the way up to management jobs, it is not clear exactly who will be affected and who will be able to stay on.
Their existing commercial commitments are all set to come to an end in August this year, which is likely when the D-Day will fall for their employees. A spokesperson from Tulip has made it clear that they were not expecting the contract to be terminated, and added that the company was “deeply disappointed” by the decision taken by M&S.
“Tulip has a high profile in the area and remains committed to the region, with other sites in Ruskington, Spalding and King’s Lynn, as well as Boston,” they said. “We will explore every opportunity to look at alternatives and minimise any impact on our people’s livelihoods. In the meantime, we are committed to seeing out our existing contractual obligations.”
“We understand that there are some impacts locally when changes are made and we will always work with our suppliers to support them and make those changes in the right way,” said a spokesperson from M&S. “While we won’t be working with Tulip at the Boston site they remain an important supplier for other products and we will be doing all we can to support them as they consult with their team.”
Losses upon losses
This is not at all good news for the Tulip group as a whole, who have already faced heavy job losses as parent company Danish Crown attempts to slash their costs. They announced that they were preparing to axe between 300 and 400 jobs at Tulip UK sites just a month ago, which follows on from another 150 jobs being lost in November 2018. If you have been affected by job cuts at Tulip sites, be sure to check out our job alerts here for the latest vacancies which may suit your skills and experience.
The overall plan is to save the company £25.75 million on their annual budget, but these latest job losses will not form part of that saving – because they also represent the loss of profit from the contract. How this will affect their long-term plans remains unclear, but one thing is certain: it is not good news for a company that has already seen the need to make drastic and sweeping cuts to try to save their profits.
“Tulip’s cost-saving programme remains unchanged by this news. We are committed to saving DKK200m during the current financial year and getting the business back into profit,” said the Tulip spokesperson, choosing to present an optimistic front. “This has been boosted in recent weeks, having signed new
long-term agreements with two key strategic customer partners. However, our immediate focus is on ensuring we support our colleagues in Boston.”
It is likely that some of the employees will be able to relocate to other sites in the UK if vacancies are available, but given their cost-cutting aims, they are unlikely to create new positions for them.