Arla to 'push ahead' with creamery closure - union

The factory in Settle employs 130 skilled workers

A dairy company has rejected proposals to keep a factory which employs 130 people open, according to the GMB Union.

Arla Foods announced plans to close Settle Creamery, in North Yorkshire, by the end of 2026 and move operations to Scotland in February.

The union said that despite putting forward alternatives to keep the factory, the company plan to "push ahead" with the move in what they described as a "devastating blow" to workers.

The milk production firm has been approached for comment, but has previously said the proposals was part of its strategy to "futureproof dairy production in the UK".

Alongside North Yorkshire Council and the North Yorkshire and York Combined Authority, the union suggested options such as product diversification, shared production use of the Settle site and a greenfield site.

However, at a consultation meeting on Friday, GMB Union said senior Arla executives had confirmed plans to relocate production to Lockerbie, dismissing alternative options.

Arla previously announced plans to move operations to Scotland

Deanne Ferguson, GMB Organiser, said: "We are extremely disappointed Arla has chosen not to take forward any of the alternative business cases put forward through a genuine and collaborative effort with key stakeholders.

"Our commitment to the workers at Settle remains absolute and we will not let the town lose 130 skilled jobs without a fight.

"GMB will now move to ballot our members on potential strike action."

She added the union urged Arla to keep the door open for further dialogue.

Previously, the dairy company said the move to Scotland would "strengthen our manufacturing network and futureproof our dairy production in the UK".

The firm added it remained "committed to being a major employer in the Yorkshire region".

A spokesperson said more than 1,000 people were employed in Leeds, including about 500 people at the company's headquarters in Leeds Valley Park and a further 450 people at its dairy in Stourton.

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