Once again, a highly profitable company has announced plans to cut jobs and close factories to increase its dividends. This time the villain of the piece is Greggs, the bakery chain who in July announced profits jumped by 19.7 per cent to £76 million for just the first six months of the year on the basis of sales rising by a more modest 7.2 to £1.1 billion. At the time they boasted of “great progress” in improving supply chain infrastructure.

Despite increasing its outlets by 57 this year, Greggs has now announced plans to shut four UK factories and cut 740 jobs out of its 33,000 workers. These are at Enfield in north London, Penrith, Kelso and Seaham. Furthermore, manufacturing at the Treforest site in Wales will cease, but it will carry on as a distribution centre. There will also be cuts at the Clydesmill in Glasgow, Manchester, and Gosforth factories. The day before this was announced, £19 million was paid out in dividends. They have also announced their Christmas menu.

The Bakers’ Food and Allied Workers’ Union (BFAWU) says that those responsible for generating the profits are having their jobs put at risk in the name of efficiency and future progression.

The union will therefore “be entering that process determined to scrutinise these proposals in full, challenge the business case where necessary and explore every possible alternative to compulsory redundancies and site closures”. General secretary Sarah Woolley said: “We will do everything within our power to fight for and protect jobs”. That is easier said than done. BFAWU’s total membership is about 14,000, so it clearly represents only a small percentage of Gregg’s workforce.