Workers at a north-east fish processor are facing the threat of redundancy after the firm lost a major supermarket contract.
Union bosses fear Young’s Seafood, which has a plant in Fraserburgh, could lose more 300 staff nationwide following the end of its deal to supply smoked salmon to Sainsbury’s.
The termination of the current agreement, which runs until November, could leave employees at the Watermill Road base out of work in the run up to Christmas.
There was a sombre mood at the factory last night as workers left following talks with management.
Reda Gelezuite, 23, who has worked at the plant for three years, said: “I am worried – it came as a shock. I had a meeting with my bosses today. They said jobs would be lost from the salmon department.”
Union member Frank Christie tried to reassure colleagues, insisting any job losses could be managed on a voluntary basis.
“I’ve heard it on the news today and I know the mood in the factory is low, but through natural wastage anyway in the run up to Christmas there will be nothing to worry about. We will be fine,” he said.
Another worker, who did not want to be named, said she hoped her job would be safe.
“Yes I had a meeting with my bosses but I am not concerned because it will only affect certain departments,” she said.
A Young’s spokeswoman refused to speculate on the number of potential redundancies, however she added: “It is a significant contract, so Young’s have spoken to employees today and also to local stakeholders about what it means.”
Young’s Seafood chief executive Pete Ward said: “Sainsbury’s wished to protect its Scottish salmon sourcing credentials and believed an alternative proposal could better achieve this objective.
“Sainsbury’s remains an important customer for Young’s and we will continue to work together in other categories to deliver great fish and seafood products to Sainsbury’s customers.
“We will be engaging with our employees and other stakeholders to discuss the implications for our business and how we can best position our company to achieve long term, sustainable growth in the current competitive market place.
Mr Ward said Young’s would now be “exploring a number of new business opportunities”.
Last night a spokeswoman for the supermarket giant said: “We have been carrying out a thorough review of our Scottish salmon suppliers to ensure we can offer our customers the best products possible.
“As a result of the supplier tender, we have given advance notice to Young’s Seafood that they will no longer pack and process salmon products for us.”
She said the firm would continue to supply Sainsbury’s stores with other fish, including cod and haddock.
Politicians pledged to do all they could to keep jobs in the north-east town.
Banff and Buchan MSP Stewart Stevenson, said: “I am aware that Young’s have lost out on a significant contract and that this may have an impact on their Fraserburgh centre of excellence.
“It has been stressed to me that no decision has yet been made on job losses, but I will continue to engage closely with senior management at Young’s and with my Scottish Government colleagues to ensure that everything is being done to protect jobs in Fraserburgh.”
Eilidh Whiteford, MP, the SNP’s parliamentary spokeswoman for work and pensions, said: “I have already spoken with both the chief executive of Young’s Seafood and with Scottish Government Ministers about what support can be provided to the Fraserburgh workforce in what will be an uncertain period.”
Ms Whiteford added that she and her Scottish Government colleagues would work with senior management at Young’s Seafood to “maximise the retention of jobs at the Fraserburgh plant.”
The Unite union has spoken out over the impact of the move on the town of Grimsby, where Young’s employs 2,000 people at three plants.
The union has no members at the Fraserburgh factory.