The GMB Union said it was ‘extremely disappointed’ that Arla had chosen not to take forward any of the alternative business cases put forward by North Yorkshire Council and the combined authority and would now ballot its members on potential strike action.
Skipton MP Sir Julian Smith described it as a ‘huge blow’ to the workers and the wider community, and said that the loss of 130 skilled jobs would have a ‘significant impact on the local economy’.
Arla has confirmed to the Telegraph & Argus sister paper, The Craven Herald, its intention to move Settle’s production to Lockerbie.
The company says it will continue to explore alternative uses for the site – at Sowarth Field Industrial Estate – during the transition period, which it estimated would take between 18 months and two years.
Deanne Ferguson, GMB organiser, said: “We are extremely disappointed Arla has chosen not to take forward any of the alternative business cases put forward through a genuine and collaborative effort with key stakeholders.”
The union says alternative proposals included a greenfield site, product diversification, and shared production use of the Settle site.
Ms Ferguson added: “Our commitment to the workers at Settle remains absolute and we will not let the town lose 130 skilled jobs without a fight. GMB will now move to ballot our members on potential strike action.
“We urge Arla to keep the door open for further dialogue and GMB remains ready to work constructively with management.”
Skipton MP Sir Julian Smith said: “This decision by Arla is a huge blow to the workers at the Settle Creamery and the wider community. The loss of 130 skilled jobs will have a significant impact on our local economy and the livelihoods of many families.”
Sir Julian added: “I have been actively involved in discussions with Arla, North Yorkshire Council and North Yorkshire Mayor, David Skaith, the GMB Union, Councillor David Staveley (who represents Settle and Penyghent on North Yorkshire Council) and local authorities to explore all possible options to keep the factory open.
“It is deeply disappointing that Arla has chosen to continue with their move to Lockerbie before they have fully explored the options North Yorkshire stakeholders have put forward.”
Arla, a Swedish-Danish multinational co-operative and the fifth biggest dairy company in the world, announced in February that it was proposing to shut its Settle site – which has been the focus of odour complaints from residents in the area – and focus its operations in Lockerbie, where it plans to invest nearly £90m to ‘support the farmer- owned cooperative’s future growth ambitions’.
An Arla spokesperson said: “Over the last two months we have engaged with employee representatives and the GMB union in detailed and meaningful consultation, and we have carefully considered all alternative proposals brought forward during the process.
“We can confirm that we will proceed with our plans for developing the Arla Lockerbie site to include Arla Settle’s production portfolio, however, we remain open to exploring alternative uses for the Settle site during the transition phase.
“Understandably, this remains a period of uncertainty for our colleagues, and our foremost priority is to continue providing support as we navigate the subsequent stages of the consultation process.”