Welsh Government officials set to meet Deeside packaging company over potential job losses

The Economy Secretary has updated an Assembly Member concerned about potential redundancies in his constituency.

Alyn and Deeside AM Carl Sargeant wrote to Cabinet Secretary for Economy and Infrastructure Ken Skates on July 14 about Mondi Group.

It had come to Mr Sargeant’s attention that Mondi Group is in consultation with trade unions and employee representatives at its Scunthorpe, Deeside and Nelson sites regarding a proposed site rationalisation.

The company had said this could result in 60 redundancies at Scunthorpe and 20 redundancies across the Deeside and Nelson sites.
The AM asked could the Welsh Government offer any support to those of his constituents who may be adversely affected by the decision.

Mr Sargeant has received a reply from Mr Skates saying that his officials are in regular contact with the company and the Cabinet Secretary understands that although there may be a small number of redundancies in some areas, the overall headcount will rise as production expands.

Mr Skates added that the company has been provided with information on the ReAct programme and further support will be offered when there is clarity on numbers affected. His officials will be meeting with the company again on August 9, he added.

Mr Sargeant said:

“I’m pleased that the Welsh Government is in close contact with Mondi Group over this issue to ensure employees get the right treatment throughout this process.

“It’s reassuring to hear that overall numbers will increase as production is set to expand, and that anyone made redundant will be supported.

“Naturally if any jobs are to be shed this is of concern. My hope is that any roles lost will be achieved through voluntary redundancies.
“I will respond to Mr Skates asking him to keep me appraised of the outcome of the meeting on August 9.”

Mondi say;

“the changes are designed to streamline operations, further improving productivity and customer service, all employees will be treated fairly throughout the process, with appropriate support and assistance being provided.”

Mondi bought the Excelsior Technologies site in Deeside from Yorkshire based private equity investor Enact in February

Enact, which counts former Leeds United and Manchester City footballer as a client made a nine-fold return on the sale of the three UK sites which includes the Deeside Industrial Park packaging business, the deal was reported to be worth £32.9m

Mondi has operations in more than 30 countries, it makes and sells consumer packaging and paper products.

In 2009 the Welsh Assembly Government granted £1m to Excelsior in support to create 200 jobs at the site.