THE future of Nestl Rowntree in York is assured, despite plans to axe 220 jobs at its city site.

Both management and unions stressed today that the jobs cut was not an indication that the chocolate empire wanted to pull out of the city.

The announcement yesterday that the jobs would be lost in a review of manufacturing and production costs, triggered a call by York MP Hugh Bayley for the company to "restate its long-term commitment" to the city.

But Deborah Tilley, senior spokeswoman for Nestl UK, said Nestl was "fully committed to York and to our employees here."

She said: "The site is a major employer and is the biggest Nestl factory in the world, producing some of the world's best chocolate brands. We have invested in the factory to the tune of £150 million over the last ten years, including £15 million this year, and will continue to do so."

The job cuts would ensure that the Nestl business remained competitive "and our employees' long-term job security is protected."

John Kirk, York-based organiser of the Yorkshire and North Derbyshire region of the GMB which represents 1,500 of the 2,300 people on the payroll at the Wigginton Road plant, said he had never had an indication that Nestl might pull out. "I don't for a second fear Nestl leaving York."

Meanwhile, unions today declared their determination to head off any suggestion of compulsory redundancies among the 220 job losses over the next 18 months.

"Compulsory redundancies would be a step too far at this point," said Mr Kirk.

The cost review, carried out over the past five months, will mean stripping out 81 of the 134 team leader - or junior management -- posts.

The plan also involves shedding about 50 staff and process workers, as well as engineers and management, as part of an attempt to rationalise overlapping technical departments across all Nestl UK factories.

Another 40 jobs are affected at Nestl's Halifax and Castleford factories, but the lion's share of the burden will be borne at York.

Mr Kirk said he planned to meet the Nestl UK management at the Wigginton Road plant next week to discuss the consultation process and to find ways to avoid brutal sackings.

Signs are "positive", according to Ms Tilley who reported that already there had been many questions about options for voluntary redundancies by staff members using a new telephone advice line set up by the company.

"We are hopeful that the jobs will go by voluntary redundancy or by natural wastage over the next 18 months," she said.

Tony Bennett, City of York Council's assistant director for economic development, said: "We are obviously disappointed that jobs are being lost.

"We recognise the company's needs to remain competitive, but there is concern about the impact for individual staff at the company. We will do everything we can to help the company and the staff through that process."

Updated: 10:57 Thursday, August 21, 2003