Jon Trickett MP: Rathbones bakery – 400 jobs at risk

Jon Trickett MP writes: Rathbones is a major local employer with around 400 staff from across Wakefield District and beyond. Some of the workers have been there for over 20 years. They are now at risk of redundancy pending the outcome of a consultation. The closure of Rathbones would not only have a terrible impact on the workers and their families, but it will also damage wider supply chains and our local economy.

I do not believe an adequate case has been made for closure. Other options for making the Rathbones site more profitable and cost-effective should be explored before the decision is taken to close – turning hundreds of lives upside down.

Last year Morrisons made an underlying profit of £970m when you strip out debt and exceptional costs, according to the Guardian Newspaper. However, the company was taken over by private equity firm, Clayton Dubilier and Rice, in 2021, which has left the company saddled with debt and has contributed to overall losses for the company.

This has led to claims from the Bakers, Food and Allied Workers Union who represents workers at the site, that ‘since Morrisons was 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.’ The union believes Morrisons are prioritising short-term yields over the long term interests of the business. It’s hard to disagree with them.

Private equity firms are financial investment companies that often buy up companies in pursuit of making a quick profit. They are notorious for taking over companies and slashing costs by waging war on the workforce.

It appears that Morrisons has indicated they could look at keeping open the production of some products at Rathbones, but only by operating a de facto policy of fire-and-rehire where the remaining workers are kept on with inferior pay, terms and conditions. This would be totally unacceptable.

Morrisons should bear in mind that the Employment Rights Bill is in the process of passing through the House of Commons. The Bill will restrict the use of fire-and-rehire tactics. Labour was clear at the election that this kind of behaviour is unacceptable in modern Britain and I hope to see the legislation passed in such a way that outlaws anti-worker practices like this.

I have submitted an Early Day Motion in the House of Commons opposing the closure of Rathbones and calling on the government to take action to provide all necessary support to workers involved. I have also called on the government to undertake an urgent investigation into the impact of private equity takeovers and acquisitions on the UK groceries market.

It’s clear to me that people are sick of big corporations exploiting the British people and giving little back in return. The Labour government must stand up for working people. That is what I will be doing as long as I am the MP for Normanton and Hemsworth.