More than 350 jobs could go after plans to close an Argos depot in Heywood were announced in what has been described as a 'major blow for the area.'
Sainsbury's - which owns the high-street catalogue store - today unveiled plans to merge five existing depots across both brands into three over the next three years, with two being closed.
One of the two warehouses earmarked for closure is the Argos depot at Heywood Distribution Park off Pilsworth Road whch serves stores in the north of England.. The other is in Basildon, Essex which currently serves shops in the south.
READ MORE: Argos announce two UK depots to shut including huge Heywood site with 1,400 jobs affected
A consultation has begun with a total of 1,400 jobs now at risk as part of the entire overhaul announced today, aimed at 'simplifying' and 'modernising' its logistics network and reducing costs.
Sainsbury's said they had not taken the decision lightly but union leaders have accused the firm of 'dumping workers in pursuit of short-term profits' whilst councillors say they feel 'let down' by the decision.
Sainsbury's declined to specify exactly how many jobs are affected at the Heywood site. However, officials at the trade union Unite said around 750 jobs were under threat as a result of the two warehouse closures, around 350 of which are at Heywood. It's understood a meeting was held with staff earlier today (Tuesday).
They said they had been told the proposals would come into effect by 2025 however Sainsbury's said they aimed to close them by 2026.
In addition to the direct job losses are the jobs of HGV drivers employed by Wincanton, on an outsourced contract, which are also at risk, Unite added. They said there was 'no economic justification' for the move and have vowed to 'fight to preserve every job.'
National officer Matt Draper said: "Management at Argos/Sainsbury’s has yet to provide any form of business case for the loss of these jobs.
"Unite will be fighting to preserve every job and will put forward an alternative business case to the company to preserve employment at these two sites.
"This is an incredibly wealthy company which should be investing in its loyal workforce rather than dumping workers in pursuit of short-term profits. If Sainsbury’s doesn’t drop its closure plans then Unite will pursue all avenues to preserve employment at these sites.”
The move has also been met with great concern by local leaders. The leader of Rochdale Council Coun Neil Emmott said: "This is clearly a major blow for Heywood and the borough as a whole and above all for the workforce at the Argos unit.
"The Council will be making contact with Argos to try and persuade them to stay or if that's not possible we need to work out how best to protect the livelihoods of the workforce going forward to the closure. We will engage with Argos, the trades unions and the workforce on this issue.
"If the closure is unavoidable, then we will engage with other local businesses to secure alternative employment opportunities for as many people as possible."
Angela Brown, councillor for West Heywood said: “I am really concerned by Argos' announcement. I don't understand their justification for putting their employees through this, especially during this cost of living crisis.
"People are already struggling to pay rising rents and bills, whilst Argos is making good profit. I've been proud to have Argos in my town for years, now I feel like they're letting us down.
"As a Heywood Councillor and a Unite member, I'll work with council and union colleagues to try to come up with a solution that preserves jobs and support their employees in anyway I can.."
Whilst North Heywood ward councillor Liam O'Rourke said: "It will be a massive blow for the area. This is a major employer in Heywood. 350 jobs is a large number. Especially whilst we're in a cost-of-living crisis.
"It's going to be a big concern for families who are already struggling with massive inflation, mortgages etc. For Argos to put people in an uncertain position like this, it's not a good moment.
"Myself and the other Heywood councillors will be working with the council and with the unions to try and find a solution to this. The MP Chris Clarkson needs to step in and get involved as well. This really needs urgent action."
The proposed closure was announced as part of a package of measures the company said would result in the 'further integration and modernisation of Argos and Sainsbury’s general merchandise logistics network.'
Alongside the merging of the five depots, the firm said they would spend around £90m to further 'automate' their depot in Daventry, Northamptonshire. No jobs there are currently at risk.
Bosses say the changes, together with the ongoing expansion of its local warehouse network 'will create a simpler, more modern network to significantly improve availability, reduce stock and enable faster customer deliveries.'
They will also 'improve productivity and the working environment, as well as increasing resilience and flexibility for the future' they added.
Sainsbury’s also said it will close its Milton Keynes office in response to flexible working across the group, but stressed no jobs would be impacted by the decision.
However, it also announced its three remaining Habitat showrooms will close later this year as it plans to launch a replacement digital showroom, which will see a small number of Habitat workers affected.
Simon Roberts, chief executive of Sainsbury’s, said: “As with any major change to our business, we have not taken the difficult decision to start this consultation lightly.
“As part of our plan to create a simpler business, we previously set out our intention to integrate our Argos and Sainsbury’s logistics networks.
“Over the last few years, we’ve been working hard to transform this network as we make our business simpler, more efficient and more effective for customers. This also allows us to reduce costs, so we can invest where it will make the most impact for our customers.”
“We understand that this will be an unsettling time for affected colleagues, and we will support them however we can throughout this process" he added.
Last month it was announced Argos would be closing all its stores in the Republic of Ireland with the loss of 580 jobs.
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