Iceland staff wait for jobs news

A consultation process has begun with Iceland staff

Staff at the Flintshire headquarters of supermarket chain Iceland Frozen Foods are waiting to hear if they will be affected by redundancies.

The firm announced on Monday that it wanted to cut 400 of the 1,200 jobs by the middle of June.

It comes a month after the company was taken over by a consortium led by the Icelandic group Baugur.

But staff said they had not been told any more details, although it might be weeks before they knew more.

One female employee told BBC Wales: "It's a consultation period and I think over the next couple of months the jobs will be evaluated and people will get to know what it will happen individually."

The Welsh Assembly Government described the news as disappointing, and said it would do all it could to help workers if the redundancies went ahead.

Chief executive Malcolm Walker said Iceland faced "immense challenges" and that "painful changes" were needed.

The company, which employs 20,000 people across the UK, confirmed that consultations with staff had started.

The announcement was made by Mr Walker, who founded the firm more than 30 years ago and returned to Iceland as part of the takeover consortium.

He had resigned as chairman three years ago.

This is only the beginning of a recovery process designed to restore Iceland to sales growth and profitability Iceland chief executive Malcolm Walker

He said he "deeply regretted" there was to be "a radical reduction" in staff at the head office, but blamed "unnecessary layers of administration" which had accrued under previous management.

Mr Walker added that there had been a huge increase in the number of people employed at head office in the last four years.

"The headcount reduction we are seeking will save money, but will also create a more efficient and responsive operation for the future," he said. "This is absolutely essential if the business as a whole is to move forward."

He also said that employees facing redundancy would only be offered statutory minimum payments because of the financial situation at the firm.

"This is only the beginning of a recovery process designed to restore Iceland to sales growth and profitability by focusing on its core products, strengths and values."

Sadness and disappointment

Kathy Hughes, who works at the Deeside base, said it was very sad news.

"It's a lot of people affected but I don't think anyone is blaming the new management - I think the previous management have got a lot to answer for," she said.

Councillor Alex Aldridge, the leader of Flintshire County Council, said it had received the news of the proposed job losses with "a sense of great sadness and disappointment" and would assist in any way it could.

Carl Sergeant, Labour AM for Alyn and Deeside, said it was "devastating news", but he said he had spoken to the chief executive and understood why he had taken the decision.

Mr Sergeant and Mark Tami MP are to meet the company on Thursday.

An assembly government spokesperson said: "It is disappointing to hear of the commercial decision announced by Iceland today.

"Should these redundancies go ahead, the Welsh Assembly Government and its partners will do all it can to help all those affected, identify alternative employment or training opportunities."