[an error occurred while processing this directive]
BBC News
watch One-Minute World News
Last Updated: Tuesday, 11 July 2006, 19:06 GMT 20:06 UK
Iceland closure sees 350 jobs go
Iceland store
Iceland has shed over 300 jobs in Flintshire in the past year
Frozen food chain Iceland has announced its distribution centre in Flintshire will close at the end of September.

About 350 jobs will go at the site, and the company will create a similar number at its new centre in Warrington, Cheshire, 23 miles away.

The company said a "significant proportion" of staff were interested in transferring to the new centre but some redundancies were inevitable.

A union spokesman said Iceland had rejected its cost reduction proposals.

The company employs several hundred staff at the company headquarters on Deeside.

The Transport and General Workers' Union (T&G) said the company had insisted on 2m in cost reductions through cutting pay and terms and conditions or they would move the depot to Warrington.


According to the spokesman, the union had put forward a number of plans including proposals earlier on Tuesday which would achieve the 2m target.

He added over 250 driver and warehouse staff jobs were now affected and a 24-hour strike starting from midnight on Thursday was a possibility.

Further talks over redundancy terms are taking place on Wednesday.

Iceland's chief executive Malcolm Walker said: "We have taken the decision to close Deeside with considerable reluctance, as the result of our failure to achieve agreement with the trade union on wages and working conditions that would have made it viable.

"Deeside is one of four Iceland depots in the UK, and is by far the least efficient and most expensive to operate."

In March, Iceland shed 80 call centre jobs at its Flintshire headquarters and made 400 staff redundant the previous year.

Iceland sheds call centre jobs
01 Mar 06 |  North East Wales
Frozen food store founder returns
11 Feb 05 |  North East Wales

The BBC is not responsible for the content of external internet sites

Has China's housing bubble burst?
How the world's oldest clove tree defied an empire
Why Royal Ballet principal Sergei Polunin quit


Americas Africa Europe Middle East South Asia Asia Pacific