Banbury Coffee Factory Shutdown to Result in 280 Job Losses

2023-11-14 21:46:28

End of an Era: Banbury's Iconic Coffee Factory Shuts Down

The long-standing coffee production facility in Banbury is set to halt operations, a decision affecting up to 280 jobs. Although the packing operation will remain active, this move marks a significant shift for the area's employment landscape.

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In a startling announcement during a meeting held at a south Northants hotel, employees were informed about the forthcoming changes. JDE (Jacobs Douwe Egberts), the current factory owner, has decided to relocate coffee production to larger facilities located in Holland and Germany. Concurrently, research and development labs in Banbury will be winding down, with their functions moving to the company's Dutch operations.

Implications for the Workforce

The transition will lead to significant job losses within the firm's workforce. Specifically, approximately 250 production and 30 research and development staff members face the prospect of redundancy.

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"There will be 250 redundancies from the manufacturing area of the Banbury factory. Moreover, the entire coffee plant, including the well-known tower, is set to be decommissioned," was the grim revelation made to the staff.

JDE has commenced discussions regarding wage and employment conditions, which will be addressed in forthcoming negotiations with union representatives and employees.

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Challenging Economic Landscape

The Ruscote Avenue factory's high expenses and competitive lag relative to other plants are among the reasons dictating its closure. "The freeze-dried coffee sector is facing overcapacity within our European factories, and Banbury has regrettably been the least cost-competitive in our network. To secure improved site competitiveness, changes are unavoidable," the company explained.

JDE reaffirmed its commitment to Banbury, stating, "Proud of our historic presence, we're determined to maintain a connection with the community. The decision to halt processing was reached after exhausting other avenues; it does not detract from the dedication of our Banbury associates, whom we aim to assist through this transition."

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Community and Union Response

Unite the Union's national officer, Paul Fletcher, labeled the potential job cuts as "devastating." He conveyed, "We will enter talks with JDE and explore every option to mitigate the impact. Our focus will be on opposing compulsory redundancies and securing the best possible exit packages for our members."

Cllr Sean Woodcock and Banbury MP Victoria Prentis voiced their concerns. Woodcock reminisced about the factory's roots in Banbury's heritage and economy, and Prentis promised to maintain dialogue with JDE management, emphasizing the need for affected workers to contribute to the consultation process. People seeking more information or support can reach out to [email protected].

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The proposed plan involves shifting coffee production from Banbury to other sites within the company's network, namely Joure in the Netherlands, Elmshorn, and Hemelingen in Germany.

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