THE boss of York Nestl's 3,000 staff has finally broken his silence.

In a staff memo - leaked to the Evening Press - the company's new managing director, Paul Grimwood, told the workforce to expect significant changes at the factory.

It said that to achieve "consistent growth" they will "have to change the way we have historically done business across all our business functions".

Mr Grimwood also revealed that Nestl had beaten rivals Cadbury and Mars on market share and that the York factory had enjoyed a "successful Christmas trading period".

The Evening Press reported this week the company's production lines were being temporarily being stopped and hundreds of agency workers faced the axe.

Mr Grimwood's memo also revealed the company is "reviewing its operations" and said staff will be informed of the "necessary steps that will have to be taken in order to make sure we remain competitive in what is a very tough market place".

The Nestl chief wrote that the Evening Press was "committed to a campaign of rumour" and criticised our recent coverage.

But Mr Grimwood has so far declined repeated requests by the Evening Press for an interview and a Nestl spokeswoman refused to say why this was the case.

A Nestl worker said: "I'm worried for the future of the factory and have been for a long time.

"The fact he refuses to be interviewed leads me to think he has something to hide."

York MP Hugh Bayley said he hoped to meet Mr Grimwood soon to "see if there is anything I can do to help them".

"It is good that Nestl is outperforming the other chocolate producers," he said.

"Selling Nestl products is the best way to safeguard jobs in York.

"It is a tough market and Nestle has to keep streamlining its operations to increase productivity and stay ahead of the competition.

John Kirk, leader of the GMB union which represents many Nestl employees, said: "What is important to me is job security on site.

"As far as I'm concerned, those jobs are secure because otherwise he (Paul Grimwood) would have announced something different.

"I'm relaxed about the situation."

A Nestl spokeswoman said: "Paul Grimwood's letter to employees is an internal company communication, and it is disappointing that the York Evening Press has chosen to publish it.

"The letter does, however, state our position very clearly: that when we have information about our company we will communicate this to our employees directly and not through the media.

"This continuing speculation about our activities and performance is unhelpful to our business.

"It is also the case that in the period prior to the release of Nestl's annual results at the end of February, the company can make no public comment on its performance."

Factory 'wall of silence'

THE new managing director of Nestl Rowntree has refused to talk to the Evening Press - despite more than half a dozen requests.

In stark contrast to his predecessor Chris White, Paul Grimwood has kept a wall of silence since taking over at the factory.

When we asked Nestl's press office why this was the case they refused to comment.

Mr Grimwood told staff in his memo: "I was disappointed to yet again read in the local press speculative comment regarding the future of our organisation here in York. It seems to me that the local press are committed to a campaign of rumour and inaccurate comment which only helps to undermine the company and our employees."

A Nestl worker said: "The fact he has consistently refused to be interviewed leads us to think he has something to hide."

Updated: 12:58 Friday, January 27, 2006