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800 Unilever jobs face axe amid site closures 800 Unilever jobs face axe amid site closures
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Unilever has announced plans to close sites in England and Wales with the loss of up to 800 jobs, including some outsourcing to Bangalore, as the consumer goods group cited "very tough" economic conditions in the eurozone.Unilever has announced plans to close sites in England and Wales with the loss of up to 800 jobs, including some outsourcing to Bangalore, as the consumer goods group cited "very tough" economic conditions in the eurozone.
Months after settling a rancorous dispute with its UK workforce over pension changes, the Anglo-Dutch business behind the Pot Noodle and PG Tips brands is preparing to close factories in Swansea and Slough, a distribution site in Bridgend, south Wales, and an office in Ewloe, north Wales.Months after settling a rancorous dispute with its UK workforce over pension changes, the Anglo-Dutch business behind the Pot Noodle and PG Tips brands is preparing to close factories in Swansea and Slough, a distribution site in Bridgend, south Wales, and an office in Ewloe, north Wales.
Unilever said the proposals would be offset by an investment of £40m in its "historic home" of Port Sunlight on the Wirral, Merseyside, with the creation of 150 jobs. Port Sunlight was built by Unilever's corporate ancestor, Lever Brothers, and was named after one of its most popular detergent products. Unilever said the proposals would be offset by an investment of £40m in its "historic home" of Port Sunlight on the Wirral, Merseyside, with the creation of 150 jobs. Port Sunlight was built by Unilever's corporate ancestor, Lever Brothers, and was named after one of its most popular detergent products. Under the plans it will become the centre of Unilever's laundry personal care business in the UK, manufacturing and developing a range of products from Persil to Radox.
Unilever said the changes would take effect by the end of next year and could lead to 500 direct job losses and about 300 redundancies among contractors and third parties, with some posts outsourced to its IT centre in Bangalore, India. If the changes go ahead they will take effect by the end of next year and could lead to 500 direct job losses and about 300 redundancies among contractors and third parties, with around 100 posts outsourced to its IT centre in Bangalore, India.
The chairman of Unilever UK and Ireland, Amanda Sourry, said the group needed to raise its game. "Like many companies today, Unilever faces the challenge of creating growth opportunities against a backdrop of very tough economic conditions in Europe," she said. "While Unilever is growing well in the UK and globally, it will always be necessary to make changes which raise our game and ensure our continued success. We believe these proposals would substantially strengthen our platform for long-term growth and competitiveness."The chairman of Unilever UK and Ireland, Amanda Sourry, said the group needed to raise its game. "Like many companies today, Unilever faces the challenge of creating growth opportunities against a backdrop of very tough economic conditions in Europe," she said. "While Unilever is growing well in the UK and globally, it will always be necessary to make changes which raise our game and ensure our continued success. We believe these proposals would substantially strengthen our platform for long-term growth and competitiveness."
About 225 jobs will be lost through the closure of the Swansea factory, which makes personal care products, about 250 at Slough, which makes products including Radox, and 25 at the distribution site in Bridgend. The company said its plans would transform Port Sunlight into a "significant centre of excellence" for the manufacture of shampoo and shower gel, with growth potential for the next decade. In April Unilever announced its best quarterly growth update since 2007, lifting sales volumes by 3.5% in the first three months of the year. Last year Unilever posted revenues of €46.5bn (£37.6bn), up 5% on 2010, with net profit broadly flat at €4.6bn. Emerging markets now account for more than 50% of Unilever's business.
About 225 jobs will be lost through the closure of the Swansea factory, which makes the shampoo brands Tresemme and VO5; about 250 at Slough, which makes products including Radox; and 25 at the distribution site in Bridgend, which distributes personal care products. Unilever hopes to move 400 of its 600 IT employees at Ewloe to Port Sunlight, which will see its workforce rise by 500 to 2,000. However, 100 Ewloe jobs will go to Bangalore and a further 100 will be made redundant.
The company said its plans would transform Port Sunlight, the home laundry prodicts such as Persil, into a "significant centre of excellence" for the manufacture of shampoo and shower gel, with growth potential for the next decade. The proposals are the culmination of two Unilever takeovers in 2010, when the group acquired the Alberto Culver business, the home of Tresemme, for $3.7bn (£2.4bn) in 2010, and the Sara Lee personal care and laundry business.
Tim Munden, vice-president of human resources for Unilever UK and Ireland, said: "Unilever is a company doing well in the UK and around the world, and this is about how we continue to do well. If we were to do nothing we would not be able to grow. We realise this decision will have difficult consequences, but Unilever is committed to the UK."Tim Munden, vice-president of human resources for Unilever UK and Ireland, said: "Unilever is a company doing well in the UK and around the world, and this is about how we continue to do well. If we were to do nothing we would not be able to grow. We realise this decision will have difficult consequences, but Unilever is committed to the UK."
The move comes months after a dispute over pension changes with the Unite, GMB and Usdaw trade unions ended. Staff at Unilever's 12 UK sites had staged 12 days of strikes since last December in a row over Unilever's decision to close its final-salary pension scheme to existing members.The move comes months after a dispute over pension changes with the Unite, GMB and Usdaw trade unions ended. Staff at Unilever's 12 UK sites had staged 12 days of strikes since last December in a row over Unilever's decision to close its final-salary pension scheme to existing members.
The walkouts hit production of Marmite in Burton upon Trent, Pot Noodles in Crumlin, south Wales, and PG Tips in Manchester. Other products made by Unilever in the UK include Hellman's mayonnaise and, on the non-food side, Lynx, Sure, Persil and Comfort. The walkouts hit production of Marmite in Burton upon Trent, Pot Noodles in Crumlin, south Wales, and PG Tips in Manchester. Other products made by Unilever in the UK include Hellman's mayonnaise and, on the non-food side, Lynx, Sure, Persil and Comfort. Unilever said staff at the Slough and Swansea sites did not join the strikes.