STUNNED technical workers at Nestl Rowntree's York factory were told today that 220 jobs are set to be axed there.

The posts threatened are managerial, supervisory and in technical support at the Wigginton Road plant.

News of the threatened job cuts was broken to the staff today by factory manager Ian Jobson.

The posts will be lost over the next 18 months if the conclusion of a review of manufacturing and production costs within Nestl UK is carried out.

Another 40 jobs are affected at Nestl's Halifax and Castleford factories, but the brunt of the burden will be borne at York, where more than 2,300 people are on the firm's payroll.

Representatives of the main unions affected - the GMB, representing process workers, and Amicus, which looks after the interests of engineering and craft workers, were also informed today.

Deborah Tilley, senior spokeswoman for Nestl UK, said: "In order that the Nestl business remains competitive and our employees' long-term job security is protected, it is necessary to continually review our manufacturing and production costs. In March 2003 we announced such a review, which is now complete.

"As a result of this review we are proposing to make a number of changes to our York factory.

"These proposed changes are subject to consultation, which will take place over the next 18 months, and would involve a number of departments being centralised, and a series of job changes, which would regrettably affect around 220 jobs at York."

She said that there would be consultation with individual employees and a special telephone advice line had been set up to answer employees' questions on issues such as pay, pensions, possible redundancy and hours.

News of the job losses was greeted with concern this afternoon by York MP Hugh Bayley.

Mr Bayley told the Evening Press: "All manufacturers compete by driving down costs, which always costs jobs.

"I hope Nestl can avoid compulsory redundancy and that it will restate its long-term commitment to York.

"York is Nestl's biggest factory in the world and I want them to keep it that way."

The leader of City of York Council, Coun Steve Galloway, said: "This is disappointing news. Nestl is still a very important part of the local economy and I want to see it staying into the future.

"We will use our economic development department to assist with finding alternative employment for employees who will be displaced.

"One hopes that this is only a temporary situation and that we will be able to sustain manufacturing jobs at Nestl and other confectionery factories in the city."

Updated: 14:04 Wednesday, August 20, 2003