Rachael Maskell: Nestlé workers can't be left with sweet nothing

York has a proud history of chocolate and confectionery production. In 1781 there were eight confectioners trading in York but by the First World War the industry centred on three factories, Craven's, Terry's and Rowntree's. Together they employed a quarter of York's population, around 18,000 people. They provided workers with support, education, entertainment, healthcare and even accommodation.
York MP Rachael Maskell who is seeking re-election.York MP Rachael Maskell who is seeking re-election.
York MP Rachael Maskell who is seeking re-election.

York’s brands were famous all over the world. When Nestlé acquired Rowntree’s in 1988, it was the fourth-largest chocolate manufacturer in the world.

From the middle of the last century there was a decline in the number of people employed in the industry. Terry’s saw several takeovers and when the factory finally closed in 2005 only 351 people were employed there, production having been transferred overseas.

Hide Ad
Hide Ad

It is therefore understandable why Nestlé’s recent announcement was so devastating for York. Every job loss affects someone’s ability to support their family and have a decent standard of living. So every job is worth fighting for.

Businesses always face difficult challenges, particularly in the current climate. The advance of the technical revolution has seen the skills of yesterday replaced by automation and new skills learnt. Now import costs of products like sugar have risen sharply with the weakness of the pound. The EU has had an impact on jobs – this cannot be denied. It has an impact on every decision.

The cost of living has risen. People have less disposable income; the rise in the weekly shop and the cost of fuel mean choices have to be made. While a Kit Kat has formed a vital part of tea breaks, for some this will be a luxury they cannot afford. The number of people using the food bank in York highlights this.

Despite an increase of 0.4 per cent in sales for the first quarter in 2017 compared with 2016, Nestlé has taken a business decision to move production of Blue Riband abroad, as it did with Smarties, Dairy Box and Black Magic and as Terry’s did earlier.

Hide Ad
Hide Ad

Why? Production costs are less, resulting in lower wages and fewer benefits for the workforce. All part of the global race to the bottom, with jobs sacrificed for shareholders. How galling for Joseph Rowntree who built his reputation on providing a more “ethical” employment model, with work viewed as a social good, and good employment terms a business necessity.

As 300 jobs cuts were announced, 156 in York and 110 in the Fawdon factory in Newcastle, with the remainder at other locations, workers were suddenly made to face their future. I expected everyone would rise to challenge the decision.

When the announcement was made, I immediately spoke to the company, wrote to the Local Enterprise Partnerships who lead business support, the City of York Council, as well as raising it with the Prime Minister at PMQs. The second blow of the week came when the Prime Minister gave her response – her Business Secretary hadn’t spoken to Nestlé, and her only suggestion was that those affected could go to Jobcentre Plus. This echoed of the past when the people of York asked for Government help to prevent an aggressive takeover of Rowntree’s by Nestlé and the Government refused to intervene.

Directions to the Jobcentre should not be the offer to people who have worked all their lives serving their company, developing skills in manufacturing which are not transferrable to the apprentices who thought their future was secure.

Hide Ad
Hide Ad

A job defines us. It’s mentioned when we introduce ourselves. We take pride in our work, it forms our identity. So when our identity is ripped from us, it hurts. When it’s done collectively, the hopes of decent jobs for all are dashed.

Announcements have been made in the last six months that 2,000 jobs will be lost from York. All these jobs matter. I am running a campaign to save the York Barracks and its skilled jobs. I am working on maintaining a Minster Law presence in York as well as working with the small business community – challenging the Government’s approach to small business, and its failing business rates regime.

The jobs under threat today are also jobs that would give York’s next generation an opportunity to be part of York’s Chocolate Story. My commitment to all Nestlé workers, present and future, is that I will fight for every job.

I am working closely with the GMB and Unite and across the community to ensure York keeps its manufacturing base.

Hide Ad
Hide Ad

Labour recognises industry has been allowed to fail and jobs drift overseas so our Business Investment Bank which will release £500bn of investment has been designed to reinvigorate our economy and create high- quality, stable jobs for the future.

Our commitment to high-quality employment will end insecure jobs by removing zero-hour contracts and we will wipe out low pay with a real Living Wage of £10 an hour. It is in our blood, it is in our name – Labour.

Rachael Maskell is seeking re-election as Labour MP for York Central.

Related topics: