News that S&A Foods in Derby had gone into administration with the loss of about 300 jobs was described as ‘a body blow’ for the workers and local economy by Unite, the country’s largest union, today (Wednesday 28 October).
Unite, which represents around 200 hourly paid production staff, said that cash flow problems relating to the firm’ contract with supermarket giant, Asda was the root cause for the closure.
The company announced this afternoon that it was going into administration and dismissing all hourly paid production staff.
Unite regional officer David Jeffery said: “This is a body blow for the employees, their families and the local Derby economy. Our members are shattered by the news.
“We understand that that the contract with Asda has caused severe cash-flow problems which resulted in the workers being sent home on Monday, except for a maintenance team
“The company is based in the suburb of Normanton which has a large Asian population - many of whom work at S & A Foods. It is a sad time for the local community.
“Unite will be giving maximum support to our members during the redundancy process and, in the longer term, support through our ‘lifelong learning’ teams to help our members apply for jobs in the area.”
S&A Foods produces a range of chilled and frozen Indian meals, as well as from other food cultures, such as oriental and TexMex. It was set up by entrepreneur Perween Warsi in 1987 who named the company after her two sons, Sadiq and Abid.
Notes to editors:
- For more information please contact Unite regional officer David Jeffery on 07812 110 625 or Unite head of media and campaigns Alex Flynn on 020 3371 2066 or 07967 665869.
- Unite is Britain and Ireland’s largest trade union with over 1.4 million members working across all sectors of the economy. The general secretary is Len McCluskey.