130 jobs under threat as Huhtamaki in Gosport proposes redundancies as trade drops after Brexit and Covid
MORE than 100 jobs could be slashed at a food packaging factory.
Proposals have been put forward at Huhtamaki in Rowner Road, Gosport, for up to 130 people to be made redundant – which equates to more than a quarter of the workforce.
According to the firm, complications from Brexit and the coronavirus pandemic have created uncertainty, and action must be taken.
It comes as redundancies in the UK reach a record high, according to the Office for National Statistics.
An internal consultation is ongoing and the company insists it is looking at a ‘number of options’.
A spokeswoman for Huhtamaki said: ‘The consultation process was initiated due to ongoing unsustainable financial performance and it covers all 407 employees at the unit.
‘Up to 130 positions are at risk of redundancy.
‘The business has been negatively impacted by a continued increase of costs and uncertainty in the marketplace since the Brexit referendum.
‘In 2020 the Gosport site, along with the entire foodservice industry, has been severely affected by the Covid-19 pandemic. The restrictions imposed to prevent the virus from spreading have reduced the footfall at Huhtamaki’s customers leading to a decline in demand.’
The company has struggled in 2020, with comparable net sales down by 8 per cent in Q2 this year (April-June)
Other proposals include a downsizing of the site by transferring product lines to other locations.
Huhtamaki, which manufactures products such as McDonald's coffee cups, had proposed an expansion of its Gosport operations – but this was curtailed by the EU referendum in 2016.
Leader of Gosport Borough Council, Cllr Mark Hook, said the news is a 'devastating’ blow for the town.
‘There is never a good time for redundancies, but this is a particularly bad time,’ he said.
‘With Christmas around the corner and the pandemic hurting the job market, things are difficult at the moment.
‘I’m sure Huhtamaki will do everything it can to protect as many jobs as possible, and their long-term ambition is to remain in Gosport, so more jobs could open up again later down the line.’
Gosport MP Caroline Dinenage says she has spoken to the firm’s general manager about the threat of redundancies.
She said: ‘It’s been a tough year for so many businesses and I am extremely sad that Huhtamaki is now consulting on redundancies.
‘I spoke to the general manager last week to offer my support and ensure that they are aware of the government schemes available to support them and their staff.’
Citizens Advice in Gosport is urging anyone who is made redundant to get in touch by emailing [email protected], or calling (023) 9252 0112.