Chamber
Plenary, 31 Oct 2007
31 Oct 2007 · S3 · Plenary
Item of business
Young's Seafood
This time last year, Young's Seafood employed around 250 people at its site in Annan in Dumfries and Galloway. By Christmas this year, there might be only a tenth of that number still in employment with Young's in my constituency. This is a story of the betrayal of a loyal workforce and of a community that has sustained the company in Annan since the 1940s. It is also an example of—to quote Mike Brider of the Transport and General Workers Union section of Unite—
"globalisation at its very worst".
On 14 November last year, Young's Seafood announced that 120 jobs were to be lost at the Annan site—an announcement that was widely condemned. The company's plans involved the transfer from Annan to Thailand of the process of deshelling langoustine tails, which are required to manufacture scampi—a product that was invented by Young's some 60 years ago. As of February this year, langoustines that have been caught off the west coast of Scotland have been undertaking a nine week, 12,000 mile round trip to Thailand, where their shells have been removed by workers who are reportedly paid 25p an hour. On their return, the tails are breaded, packaged and sold as "Scottish scampi".
That announcement, in itself, was a devastating blow to Annan, but Young's was quick to issue assurances to the workers who would remain. According to the company's press release of 14 November 2006, the "re-introduction of hand peeling" was part of a long-term plan to grow the Scottish langoustine market. Young's director of scampi stated:
"we remain committed to Annan and fully expect that our development plans for the Scottish langoustine will result in long-term security for the site and even possible expansion in the future."
The company's deputy chief executive officer, Mike Parker, also advised me during a meeting at the beginning of this year that transporting langoustine tails to Thailand was carbon neutral, as there would be savings in water use and refrigeration. Although he advised me that this claim was being validated by the Carbon Trust, I found it to be rather counterintuitive. However, an evaluation that was undertaken by Enviros Ltd stated that possible effects range from a net carbon reduction of 292 tonnes to an increase of 229 tonnes. The Carbon Trust agreed that the methodology that was used by Enviros was sound—but the input data were provided by Young's. Perhaps I am cynical, but we should all have been equally sceptical about some of the other assurances that the company was offering.
After a sustained and vigorous but sadly unsuccessful campaign by the T & G, 100 workers were made redundant in February this year. Less than a month later, at 1.30 am on Thursday 8 March, a major fire broke out at the scampi production plant in Annan. Mr Parker, the deputy chief executive officer, issued reassurances that very day. He said:
"there is absolutely no question mark over the future of the facility or our Annan employees … I want to make it absolutely clear to all our staff that their jobs remain secure. Young's is committed to staying in Annan and building a bigger scampi business."
However, on 11 October, a mere 32 weeks after those assurances were given, Young's announced a planned restructuring of its United Kingdom operations, with the transfer of 23 jobs in Pewsey and 89 in Annan to Cromer, Fraserburgh and Grimsby. Young's cunning plan is to reduce the workforce in Annan and to retain the site as its
"langoustine grading, freezing and coldstore operation."
However, one wonders for how long using the Annan site as a big freezer will remain viable.
Unlike the previous redundancies, when there was a 90-day consultation period, a consultation period of only 30 days has been offered. The unions have been arguing that that is not enough for workers to consider the option of relocation—which is available because an additional 50 jobs are now available at the site in Grimsby, hence the wording of my motion. However, John Holroyd, the regional organiser for T & G Unite, has advised me that most of the work force are totally scunnered, and have no wish to remain in the employment of Young's at Annan or anywhere else. Who can blame them? To date, three workers have indicated an interest in relocating to Grimsby—I understand that the company is offering them the financial incentive of the train fare there and a week in a bed and breakfast.
I accept that the Scottish Government is not able to force Young's to reverse the decision—it is a commercial decision that has been taken by a commercial company—and we hear frequent complaints from industry and politicians about overregulation of industry. My colleague John Park will expand on that issue. In this case, there has been no protection for Scotland-domiciled workers who are producing a product that is labelled and marketed as being Scottish, and who are working for a company that has its headquarters in the United Kingdom. There is no regulation to protect those workers or to force the company to say that the product is not processed in Scotland.
The current minister's predecessor, Allan Wilson, advised me last year that Young's had been taking forward its application for a Scottish Executive Environment and Rural Affairs Department processing grant for four deshelling machines for the Annan site, which would produce a better product. Members of Young's management also referred to that in conversation with me last year as part of the alleged potential expansion. Can the minister or his colleagues in the rural development and environment team advise whether that grant was awarded to Young's and if so, what has happened to the four machines that should have been coming to Annan?
This is a sorry tale of globalisation and betrayal of a workforce. I do not blame any of my constituents for not wanting to work for the company any longer. I seek the minister's assurance that whatever can be done for the workers who are being made redundant will be done, in order to enable them to reskill and to find alternative employment in the Annandale and Eskdale area.
"globalisation at its very worst".
On 14 November last year, Young's Seafood announced that 120 jobs were to be lost at the Annan site—an announcement that was widely condemned. The company's plans involved the transfer from Annan to Thailand of the process of deshelling langoustine tails, which are required to manufacture scampi—a product that was invented by Young's some 60 years ago. As of February this year, langoustines that have been caught off the west coast of Scotland have been undertaking a nine week, 12,000 mile round trip to Thailand, where their shells have been removed by workers who are reportedly paid 25p an hour. On their return, the tails are breaded, packaged and sold as "Scottish scampi".
That announcement, in itself, was a devastating blow to Annan, but Young's was quick to issue assurances to the workers who would remain. According to the company's press release of 14 November 2006, the "re-introduction of hand peeling" was part of a long-term plan to grow the Scottish langoustine market. Young's director of scampi stated:
"we remain committed to Annan and fully expect that our development plans for the Scottish langoustine will result in long-term security for the site and even possible expansion in the future."
The company's deputy chief executive officer, Mike Parker, also advised me during a meeting at the beginning of this year that transporting langoustine tails to Thailand was carbon neutral, as there would be savings in water use and refrigeration. Although he advised me that this claim was being validated by the Carbon Trust, I found it to be rather counterintuitive. However, an evaluation that was undertaken by Enviros Ltd stated that possible effects range from a net carbon reduction of 292 tonnes to an increase of 229 tonnes. The Carbon Trust agreed that the methodology that was used by Enviros was sound—but the input data were provided by Young's. Perhaps I am cynical, but we should all have been equally sceptical about some of the other assurances that the company was offering.
After a sustained and vigorous but sadly unsuccessful campaign by the T & G, 100 workers were made redundant in February this year. Less than a month later, at 1.30 am on Thursday 8 March, a major fire broke out at the scampi production plant in Annan. Mr Parker, the deputy chief executive officer, issued reassurances that very day. He said:
"there is absolutely no question mark over the future of the facility or our Annan employees … I want to make it absolutely clear to all our staff that their jobs remain secure. Young's is committed to staying in Annan and building a bigger scampi business."
However, on 11 October, a mere 32 weeks after those assurances were given, Young's announced a planned restructuring of its United Kingdom operations, with the transfer of 23 jobs in Pewsey and 89 in Annan to Cromer, Fraserburgh and Grimsby. Young's cunning plan is to reduce the workforce in Annan and to retain the site as its
"langoustine grading, freezing and coldstore operation."
However, one wonders for how long using the Annan site as a big freezer will remain viable.
Unlike the previous redundancies, when there was a 90-day consultation period, a consultation period of only 30 days has been offered. The unions have been arguing that that is not enough for workers to consider the option of relocation—which is available because an additional 50 jobs are now available at the site in Grimsby, hence the wording of my motion. However, John Holroyd, the regional organiser for T & G Unite, has advised me that most of the work force are totally scunnered, and have no wish to remain in the employment of Young's at Annan or anywhere else. Who can blame them? To date, three workers have indicated an interest in relocating to Grimsby—I understand that the company is offering them the financial incentive of the train fare there and a week in a bed and breakfast.
I accept that the Scottish Government is not able to force Young's to reverse the decision—it is a commercial decision that has been taken by a commercial company—and we hear frequent complaints from industry and politicians about overregulation of industry. My colleague John Park will expand on that issue. In this case, there has been no protection for Scotland-domiciled workers who are producing a product that is labelled and marketed as being Scottish, and who are working for a company that has its headquarters in the United Kingdom. There is no regulation to protect those workers or to force the company to say that the product is not processed in Scotland.
The current minister's predecessor, Allan Wilson, advised me last year that Young's had been taking forward its application for a Scottish Executive Environment and Rural Affairs Department processing grant for four deshelling machines for the Annan site, which would produce a better product. Members of Young's management also referred to that in conversation with me last year as part of the alleged potential expansion. Can the minister or his colleagues in the rural development and environment team advise whether that grant was awarded to Young's and if so, what has happened to the four machines that should have been coming to Annan?
This is a sorry tale of globalisation and betrayal of a workforce. I do not blame any of my constituents for not wanting to work for the company any longer. I seek the minister's assurance that whatever can be done for the workers who are being made redundant will be done, in order to enable them to reskill and to find alternative employment in the Annandale and Eskdale area.
In the same item of business
The Deputy Presiding Officer (Trish Godman):
Lab
The final item of business today is a members' business debate on motion S3M-662, in the name of Elaine Murray, on further job losses at Young's Seafood, Ann...
Motion debated,
That the Parliament regrets the announcement on 11 October 2007 by Young's Seafood of the loss of 89 jobs from its Annan plant; notes that 100 jobs had alrea...
Elaine Murray (Dumfries) (Lab):
Lab
This time last year, Young's Seafood employed around 250 people at its site in Annan in Dumfries and Galloway. By Christmas this year, there might be only a ...
Derek Brownlee (South of Scotland) (Con):
Con
I congratulate Elaine Murray on securing the debate. I will clarify for members why I did not feel able to sign the motion. It was not because I disagreed wi...
Jamie Stone (Caithness, Sutherland and Easter Ross) (LD):
LD
I congratulate Elaine Murray on bringing the motion to the chamber for debate. Given that I come from the opposite end of Scotland, members might wonder why ...
Alasdair Morgan (South of Scotland) (SNP):
SNP
I congratulate Elaine Murray on securing the debate. I apologise on behalf of Mike Russell, who would have liked to be here, but he has a ministerial meeting...
John Park (Mid Scotland and Fife) (Lab):
Lab
I am very keen to speak in the debate, as I have real interest in the issue and would like to show solidarity with and support for the workers at Young's. It...
Jim Hume (South of Scotland) (LD):
LD
I, too, congratulate Elaine Murray on her motion. I welcome the chance to speak in the debate, as Annan is an area with which I have had a long family histor...
The Minister for Enterprise, Energy and Tourism (Jim Mather):
SNP
I, too, congratulate Dr Elaine Murray and thank her for raising the issue of the latest proposed job losses in her constituency. She has given us the opportu...
Meeting closed at 17:44.