Just weeks before Christmas, former workers at the Orchard House Foods (OHF) factory in Gateshead don't know how they'll pay their bills or keep food on the table this winter - after a promised redundancy payment was delayed at the last minute.
In August OHF - which supplies the likes of Marks & Spencer, Morrisons and Pret A Manger - announced plans to close its Gateshead base which would put 430 jobs at risk. Though some staff had the opportunity to relocate to the midlands, hundreds have now been made redundant.
OHF had said it would pay final redundancy payments two weeks after someone's final pay packet - for many December 9 - but on Thursday evening workers received an email saying that "there will be a delay in making the payments owed to you following your redundancy". They were also told: "We are hopeful this will be resolved shortly; however I need to inform you that realistically, payments will not be made until the New Year."
Blaydon MP Liz Twist - whose constituency includes the now-shuttered factory - said the move was "simply outrageous" and demanded it was addressed as soon as possible.
Members of staff waiting for the money have told ChronicleLive how many had been banking on this money ahead of Christmas and during a cost-of-living crisis which has seen household bills rocket. They told of how a number of couples were employed by the firm and waiting for cash - meaning they'd be hit twice by the loss of expected income.
Speaking on condition of anonymity, one member of staff said: "Everyone received an email at ten past nine last night saying that our holiday and redundancy pay would be delayed. That's it. They have left people desolate. I have had people speaking to me and they can't pay the bills.
"There are people who have been relying on this and waiting to buy Christmas presents for their kids. There are people who will have had nothing in the bank."
Another added that he was particularly concerned as there did not appear to be support available from the company - and that many international workers affected by redundancy would not be aware of how to navigate the benefits and social security system in the UK. He added: "It's ridiculous what they have done to us. There are 200 of us now with no money at Christmas. I've not been able to get another job so I'm sitting here with nothing.
"It's impacted on peoples' Christmases though for me it's that I can't pay my bills."
Liz Twist said: "“It is simply outrageous that hundreds of people are left disappointed by this news. Orchard House Foods have rightly stated that inflation has driven costs, but that is the stark backdrop that many of their former colleagues face also, to leave them with nothing at such short notice ahead of the festive season is appalling.
"Orchard Farms need to address this issue as soon as possible and ensure that those who were made redundant earlier in the year receive their redundancy entitlement. Any constituents affected by this can get in touch with my office to discuss this should they wish."
Orchard House, which makes prepared and packaged fruit, fruit drinks, fruit jellies, fresh fruit yogurts, compotes and granolas, said in the summer that the factory's closure was to consolidate its business in Corby. The Gateshead site was “continuing to make losses that make it commercially unviable” despite investment, the company claimed.
A spokesperson for Orchard House Foods, said “We would like to apologise to all our former colleagues following the delay in the payment of their redundancy money. Since we announced the closure of the Gateshead site, the severe inflationary pressures and other issues in the food industry have worsened.
"This has contributed to falling sales and had a significant financial impact on the business. We are working with our banks and shareholders to secure additional funding but regrettably this is taking longer than anticipated. However, we are confident the situation will be resolved in the New Year.
"We will then ensure that our former colleagues receive all the redundancy money owed to them as soon as possible. We will keep them fully informed. “
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