14 March 2024 , 15:39
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Irn Bru maker AG Barr has said that up to 195 jobs are "likely to be cut" as it set forward proposals to close some of its sites across the country.
The Scottish drinks company said locations in Moston, Wednesbury, Dagenham and Leeds are all at risk as part of a business reorganisation. The three first sites are part of the Barr Soft Drinks business, which is it's direct to store delivery operation, and could be closed as soon as the end of June this year - this would impact around 160 employees.
The Leeds site is the office of Boost Drinks, which AG Barr bought in December 2022. Under its plans, Boost will be integrated into the Barr Soft Drinks business by the end of the year at the 35 jobs. AG Barr told the Mirror all those impacted have now entered a consultation period in regards to their role.
A spokesperson for A.G. Barr told the Mirror: “After a full review, we have shared with employees a proposal to close Barr Direct – our direct to store delivery operation for convenience retailers. Instead, the company proposes moving to an enlarged and enhanced field sales team, supplying brands through existing wholesale channels in line with our ongoing growth strategy. While approximately 160 staff have entered a consultation period, we expect some new field roles will be created.
“We are also proposing to fully integrate Boost, a business A.G. Barr acquired in 2022, with Barr Soft Drinks, to reduce duplicated activities and allow the Boost and Rio brands to benefit from the breadth and scale of the larger business. Around 35 Boost colleagues have now entered a consultation period and we hope that some of our Boost colleagues may take up roles within the Barr Soft Drinks business. Both proposals are subject to consultation and we intend to fully support our employees through these proposed change
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In August last year, the drinks manufacturer faced strikes from its workers at its production and distribution centre in Cumbernauld, North Lanarkshire who rejected a 5% pay rise from the firm. At the time, AG Barr said it had made a pay offer it believed was "fair and competitive". The strikes were organised by Unite Union who represented 11 trucker and shunter drivers who worked for the company. The strikes were staged between August 11 and October 6 and a continuous overtime ban began on 8 August. At the time there was concern that supplies of the popular Scottish drink could run low due to the industrial action.
At the same time, CEO Roger White announced that he was to step down from his role within the next year. White joined the firm in 2002 and was appointed to the top job two years later. In February this year, AG Barr, which also runs the Rubicon and Funkin brands, announced that Euan Sutherland, the former boss of Saga and Co-operative Group, would replace White when he retires later this year. Sutherland is expected to take the reigns of the company from May 1.