Trade Union

Bakers’ union fury at private equity-owned Morrisons bakery closure

Bakers, Food and Allied Workers’ Union press release:

The BFAWU have reacted furiously at the beyond disappointing announcement today that Morrisons are to close their Rathbones site in Wakefield and make redundant 400 loyal workers, with many more in the supply chain and agency workers also impacted. 

Many of the workers losing their jobs have worked at the site throughout the 20 years it has been producing bread for Morrisons.

This news comes after Morrisons were taken over by Private Equity firm Clayton & Dubilier in 2021.

The General Secretary of the Bakers Food and Allied Workers Union (BFAWU) Sarah Woolley said:

 “Since Morrisons were bought out by Clayton Dubilier & Rice in 2021 we have seen the traditional cycle of private equity firm behaviour post takeover that throws workers on the scrapheap without even a glance back.

They have asset stripped Morrisons, with our members now bearing the brunt of their mismanagement with this short-sighted decision to close the site. 

This treatment of people is plain wrong and unfair on the hundreds of people who work at the site and who have had their lives turned upside down by this decision.”

The company has suggested that they could potentially keep the morning goods part of the factory open, however this smacks of fire and rehire with anyone staying on at Rathbones expected to work for worse pay, terms and conditions.

Sarah Woolley is adamant that the union will not allow this to happen:

“We will not accept a de-facto fire and rehire approach by these private equity asset strippers. No trade union worth its salt would accept the stripping away of the terms and conditions and pay that the branch has worked hard over a number of years to negotiate. 

Settlements negotiated in good faith

The current settlements were negotiated in good faith and are exactly what our members need – we cannot accept a deterioration that would drive many into ‘in-work’ poverty. 

Enhancing the profits of asset stripping vultures at the expense of already low paid workers cannot, and will not, be an option for us.

The BFAWU will continue to talk to the company through this process as well as local politicians and relevant government ministers to help protect our members and ensure they get the support they need to find alternative employment.

We will also be making the case the Government to address the callous and quite frankly cruel behaviour of private equity companies like Clayton & Dubilier. 

They cannot be allowed to act with such impunity and leave their wreckage behind for workers, their communities and government to have to deal with without any penalty or recourse for their behaviour.  

We have to make a stand against these types of private equity firms that repeatedly treat working people in this way and we will be saying exactly that to the UK Government.”ends

For further information please contact BFAWU General Secretary Sarah Woolley on Sarah.Woolley@bfawu.org  

[Editorial note: see Michael Roberts article Private equity: Vampire capital, here.]

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