Nestle workers take their battle against 645 York job losses to the heart of Government

The coach load of Nestle Rowntree trades unionists may have got nowhere near to the Prime Minister, thanks to the tight ring of security around the Labour Party conference venue.

They may also have had to compete against a host of disparate protesters.

But they still returned to York last night hoping they may have started to put the growing crisis of manufacturing job losses on the agenda for Tony Blair's successor - not to mention sent out a message to Nestle Rowntree that they aren't prepared to take its decision to "rip the heart out of York" lying down.

Not only did they win the "sympathetic ear" of Trade and Industry Secretary Margaret Hodge and an emergency motion to conference calling on the Government to intervene in the Nestle redundancies.

They also won an indication from Selby MP John Grogan that manufacturing redundancies may become a key issue in the race to become the next leader of the Labour Party.

He said that MP Ed Balls - "the nearest to the chancellor you can get" - raised the issue earlier this week. Gordon Brown - or whoever takes on the Premiership from Mr Blair - should be warned: This issue will not go away.

About 30 trade unionists travelled to the Labour Party conference, in Manchester, to demand action to protect British manufacturing jobs.

They called, in a demonstration, for backing in their efforts to "stop Nestle ripping the heart out of York".

A motion is set to be discussed by conference either today or tomorrow, calling on the Government to meet with Nestle to persuade it to keep production in the UK.

The workers' message won a sympathetic response from the Secretary of State for Trade and Industry, Margaret Hodge.

Regional Amicus union official Tony Ramderson said he met Mrs Hodge to discuss Nestle's announcement last week of 645 redundancies at the York factory, along with other "body blows", including Norwich Union's 450 job losses and the 103 redundancies at British Sugar.

He said he called for the Government to prevent British job losses, and said he received a "sympathetic ear, but no promises".

He said the minister had agreed to meet again within the next few weeks, possibly by coming to the region.

Following the demonstration by Nestle workers, the employees attended a fringe meeting addressed by York MP Hugh Bayley and Selby MP John Grogan.

They were vigorously quizzed by the workers over the Government's stance on the continuing loss of manufacturing jobs in Britain.

John Kirk, of the GMB union, who chaired the meeting, said the union was looking to the Labour Party and Government for support.

"The Nestle workers are determined to resist the company's plans to export jobs and to unilaterally change the terms and conditions of employment of the workforces," he said.

Mr Grogan won applause when he said the Government needed to look again at how manufacturing jobs were protected in the UK, saying: "I think it is time for a review of labour laws."

Mr Bayley stressed that a balance needed to be struck between the protection of existing jobs and discouraging employers from investing in new jobs in Britain.

He said unemployment was much lower in Britain than other European countries such as France and Germany, partly because employers were encouraged to create jobs here thanks to Government policies.

Nestle hits back at union claims over cut backs

Nestle Rowntree today strongly denied union claims it was "ripping the heart out of York" - or planning to export jobs.

The company issued a hard-hitting statement after union members distributed leaflets outside the Labour Party conference making the "ripping" claim.

A spokesman said it was proposing "difficult but essential changes", and it was very aware of the impact on its employees and the strength of feeling this creates. "However, it is very important to be clear about the facts," he said.

"The GMB claim that Nestle is "Ripping The Heart Out of York". We strongly refute this claim. We face a choice between making difficult but essential changes to secure the future of the factory in York, safeguarding the great majority of jobs; or allowing the factory to become increasingly uncompetitive leading eventually to closure, the fate suffered by Terry's.

"Nestle has invested £400 million in the York factory since it acquired Rowntree. This investment has secured a future for the factory. Without this investment, the factory would face closure. Our proposal is an alternative to closure that will establish a modern, competitive factory in York, which is good for the company, the majority of our employees, and the city. We will remain at the heart of the city as one of the top two employers in York, committed to investing in its future."

He said the company proposed to transfer manufacturing from York to other factories in Europe, two of which were actually in the UK. "It does not export the jobs, which sadly will be lost in York. Manufacturing will be transferred to factories which have existing capacity and where they can produce more efficiently than the York factory, which has become uncompetitive."

He said about 100 jobs would be created at other factories at most. "This proposal is not about exporting jobs, it's about manufacturing our products more efficiently so we can be more competitive as a business - which is essential for the success of Nestle Rowntree, and in the interests of everyone concerned about our future."

He also strongly denied claims that the company was unilaterally changing terms and conditions. "We have been discussing potential changes with the GMB for many months, and have repeatedly invited them to put forward proposals for reviewing terms and conditions, which they have failed to do. We remain totally committed to consulting with the GMB to review terms and conditions, ensuring they are fair, flexible and affordable. It is now for the GMB to respond constructively and engage in the process.

"It is very unhelpful to portray our proposals inaccurately in this way, and it can only create further uncertainty for our employees."