Arla to 'push ahead' with creamery closure - union

A dairy company has rejected proposals to keep a factory which employs 130 people open.

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

The GMB Union 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.

A spokesperson for Arla Foods said the company had "engaged with employee representatives and the GMB union in detailed and meaningful consultation" and had "carefully considered all alternative proposals brought forward during the process".

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.

On Monday an Arla Foods spokesperson told the BBC the company planned to develop the Arla Lockerbie site "to include Arla Settle's production portfolio" and added Arla was "open to exploring alternative uses for the Settle site during the transition phase".

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.

In a statement Arla said: "Understandably, this remains a period of uncertainty for our colleagues, and our foremost priority is to continue providing support as we navigate the subsequent stages of the consultation process."

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