Warehouse to move operations out of county by this autumn
Another 440 jobs are at risk in the county after retail chain Argos announced plans to pull out of its distribution site in the town.
The retail chain announced yesterday that it plans to leave the site in Bangrave Road by the autumn and relocate the roles to Magna Park in Leicestershire.
It is the third major blow for the town in the past two weeks, following the announcement that 110 jobs are to be cut at Tata Steel and 150 more are under threat after Eddie Stobart’s decision to close its depot in Eismann Way.
The Argos site is managed by logistics firm Wincanton, and its employees have been told they are eligible to transfer to Magna Park.
Staff were told in a letter that Argos had chosen Corby as a clause in its contract with Wincanton allowed it to leave the site with no financial penalty.
A woman who works for Argos, but who asked not to be named, said: “There were rumours flying around yesterday morning that a big announcement was to be made.
“People on the shift were called together at 2pm and we were told it is closing in the autumn. People were shocked and completely stunned. Some were in tears.”
An Argos spokesman said: “We propose to reconfigure our Argos distribution centre in Magna Park and exit the Wincanton managed operation in Corby, to reduce network costs and create a better balance between the flow of goods to and from the Midlands. Subject to colleague consultation, it is proposed that this work will commence in the summer and be complete by the autumn.
“All affected Corby employees are eligible to transfer to the Argos site at Magna Park. Subject to the proposals, individuals may be able to explore the possibility of transfer to other Wincanton sites and contracts if they are unable to transfer to Magna Park.”
A Wincanton spokesman said: “Inevitably some of our employees will be disappointed and concerned about the proposal and both Wincanton and Argos wish to make it clear that this does not reflect upon their professionalism, commitment and contribution to the Corby operation.”
Adrian Jones, regional officer for union Unite, said: “We are massively disappointed because we are talking about hundreds of jobs moving out of Corby. It is a massive blow.”
Corby Council leader Tom Beattie said: “It is devastating news, coming on top of the job losses at Stobart and Tata.
“Corby seems to be taking a hit but it is happening elsewhere in the country. I think it is a sign the economy is slipping back into recession.”
Corby MP Louise Mensch said: “It was as much of a shock to the council as it was to me. The company didn’t flag it up with any local politicians which is a great shame, as we would have liked to have seen if there was anything we could have done to intervene and help save these jobs.”
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Comments
There are 20 comments to this article
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DMT48
Saturday, February 4, 2012 at 02:56 AM@Afloat Quite. If IDS has really consulted with the unemployed in constructing the welfare reforms, I'd like to know who he consulted with - it certainly can't have been any unskilled workers, carers or any of the army of people on zero-hour contracts who have almost no employment rights at all. Zero rights contracts are just about the bigger barrier to the unemployed, when trying to get off the dole. There are other things he is doing that make no sense, like increasing the number of hours needed to claim Working Tax Credit (for some people), which have received no media coverage at all. Under the Universal Credit, the self-employed will also be assumed to be on the minimum wage, which will be a barrier to many people who are trying to start a small business. If this government really wants to get people back to work, it's not doing a very good impression of it.
Rikmeister
Friday, February 3, 2012 at 03:01 PMThanks for the kind words people. It really does seem unfair but apparently legal. Even if i had the choice to work there ( which i haven't ) it would cost me one third of my weekly wage to commute there. I can barely afford the bills and mortgage now so that is a none runner from the start. But i can resign as on a Zero hour contract i expect no redundancy. Good luck to the rest though.. :((
Afloat
Friday, February 3, 2012 at 11:55 AMIan Duncan Smith and the DWP have announced that it is fair and reasonable to expect someone to commute up to 90 minutes each way for work, even for minimum wage employment, and benefit will be withdrawn for those found refusing such jobs. This means someone from Corby will be expected to take a cleaning job in Central London even though the rail fares exceed the wages. For some reason, MPs are exempted and can claim for a taxpayer-funded second home even if they already live 30 minutes from the House - Chris Grayling, Frances Maude and Eric Pickles are three such beneficiaries of this scheme, and all have chauffeur-driven ministerial cars. The greatest scandal is the "Zero-hours" contract, which is illegal in pretty well every other country in Europe.
Comedian
Friday, February 3, 2012 at 09:29 AM"If the core staff do not want to make the move then they are seen as resigning and will get no redundancy payout"........my god that can't be legal can it?sell your house,pull your kids out of school or drive A SEVENTY MILE ROUND TRIP or you are seen as quiting? .....where is our MP and what is she doing to about this scandal?
DMT48
Friday, February 3, 2012 at 04:09 AM@Rikmeister Thanks for the info. Best of luck to you and your colleagues, finding some more work.
cleverzippy
Thursday, February 2, 2012 at 11:16 PMBest wishes to Rikmeister and all the others affected, not forgetting the guys from Stobart and Tata.
Afloat
Thursday, February 2, 2012 at 05:44 PM@Rikmeister. Worrying times - I wish you the very best of good luck in your search.
Rikmeister
Thursday, February 2, 2012 at 03:10 PM@DMT48.. I work there and know these facts... 1 Wincanton is signing a new contract with Argos at the Kettering site so that operation will continue. 2 Argos says there are 400 positions available at Magna Park but they are hoping 75% of the Corby staff will not want to work there. 3 If the core staff do not want to make the move then they are seen as resigning and will get no redundancy payout. Now you can see why they want most people to find new jos elsewhere. 4 Many people work for Wincanton on Zero hour contracts and can be let go at a few days notice. I am one of them. Finally Wincanton is looking for a new client to take the Corby unit but i reckon there is little chance of that in this climate. Im off to job hunt now.!
DMT48
Thursday, February 2, 2012 at 12:27 PMJust out of interest, is the area they are moving operations to, an Enterprise Zone? I seem to recall there was a 'good deal' done on the Kettering site, which might explain why they are staying there. I thought most of the people working there were agency staff on zero hour contracts - who would want to commit to travelling 30 miles or so for that anyway, given you can be sent home 15 minutes after you arrive if they don't need you?
Subcomandante
Thursday, February 2, 2012 at 09:44 AMNot one to defend Mensch, but I'm not sure what her or CBC could've done to prevent or reverse this decision. The economic climate is to blame as far as I'm concerned, our economy is heading into recession again.
lindaruby
Thursday, February 2, 2012 at 12:35 AMWell Wincanton has managed to get an out of jail card free, wee can transfer to another depot 35 miles away if you don't have transport TUFF if you have child care issues TUFF, no redundancies it's an absolute disgrace.
john250
Wednesday, February 1, 2012 at 10:45 PMmaybe the photographer would like to hand his snaps over to the police who could then prosecute the idiot Corsa driver thats dangerously left their car right on the corner of the road where HGVs pull out onto the main road
Beanfield Beast
Wednesday, February 1, 2012 at 05:52 PMI doubt there was anything the MP or Councillors could have done, its a commercial decision by a firm who are struggling in the high street. But to have two large logistics firms leave the town in such a short space of time is worrying. Can't help but think that Government austerity measures are partly to blame, they're laying people off so less are in work, and those that are have less money to spend. What did they think was going to happen?
Afloat
Wednesday, February 1, 2012 at 05:26 PMI think you'll find that Ms Mensch is more preoccupied this afternoon voting in favour of the Welfare Reform Bill and the benefit cap and supporting minister Chris Grayling....a man who claimed over £68,000 from the taxpayer for a "second home" near parliament even though he already owned three other properties, including a substantial house, in London - the furthest away being a mere 17 miles from the front door of the Houses of Parliament.. The DWP themselves are forecasting a further 750,000 will join the unemployed in the next 12 months. Sadly, the folk currently losing their jobs in Corby and elsewhere will soon be labelled "feckless" and "scroungers" by those who know better.
corby chick
Wednesday, February 1, 2012 at 04:07 PMAtilliator,I agree that the quality of shops in the Town Centre has recently been dire, this is town centre owners responsibilty and not Corby Council. Councillors are too busy plotting with top management at the council to get rid of the most forward thinking chief executive in the country (fact) and dont forget that not one of the top managers lives in Corby or gives a fig about anything other than their sky high wages approx 3X£80k along comes full time Unite shop steward new leader of the council, great advert for labour!!!! thank god he didnt get elected as next labour party candidate for Corby, as Corby no longer has a future
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