Wiseman wields jobs axe as dairy depot shuts down

A DAIRY giant has announced it is to close one of its Lothian depots with the loss of up to 96 jobs.

Robert Wiseman Dairies, which supplies milk to Tesco and Sainsbury’s, has said it wants to end distribution at its Loanhead centre in Midlothian, and relocate the business to its Whitburn depot in West Lothian.

The company has given 74 of the Loanhead staff the opportunity to continue employment at Whitburn, but at least 22 of the 96 employees will be made redundant.

Staff were told the news during a meeting yesterday and the depot could now close within two months.

A Wiseman spokesman today said the company was "saddened" by the move, which it blamed on a reorganisation of supermarket contracts. "We very much regret that we have had to take this decision. A consultation process has begun with staff and unions and Wiseman will work to ensure that the impact of this closure is minimised," he said.

In May, the dairy industry was rocked by supermarket giant Asda’s decision to move to a single milk supplier, Arla Foods, dropping both Wiseman and rival Dairy Crest in the process.

Wiseman’s contract had been worth some £70 million a year and involved the supply of 180 million litres of milk.

Although the dairy firm bounced back during the summer after securing contracts to increase its supply to Sainsbury’s and Tesco, the East Kilbride-based company has found itself supplying less milk to Scottish supermarkets as a result.

Wiseman today admitted this was a factor behind its plans to close the Loanhead depot, which will leave just one plant supplying Edinburgh and the Lothians.

The company also said it wants to turn its Whitburn distribution dairy into a "super-depot" for the region. A spokesman said the firm is investing in the depot, and hopes to find jobs for the 74 Loanhead staff offered a relocation package.

"There was a decision by the company to invest in the development of Whitburn as a distribution centre for Edinburgh and the Lothians," he said.

"We do regret very much that we have to make some people redundant, but we are doing our best to help the staff. However, we cannot offer employment to all 96 employees as there would be too many overlaps - for example in the administration department."

The job losses were today described as "regrettable" by Midlothian Council leader Adam Montgomery.

He said: "Any loss of jobs in this area is regrettable, but we will seek to work with the company, offering advice, information and assistance, particularly to staff who may be unable to relocate or are faced with redundancy following this closure."

Usdaw, the union of shop, distributive and allied workers, is expected to be heavily involved in the consultation process, which has already started. The union was last night unavailable for comment.

Milk rival Arla Foods, which now has the Asda contract, also announced the closure of two of its dairies last October - with the loss of more than 400 jobs.

However, the company said 80 new jobs were being created through its move to supply Asda in Scotland.

Wiseman’s supplies to Tesco and Sainsbury’s have significantly increased since it lost the Asda contract, but the increase in distribution largely applies to England.

The company’s decision to close its Loanhead depot comes just one month after the founder of Wiseman died at the age of 88.

Robert Ramsey Wiseman died after suffering a heart attack while playing bowls. He started the company in 1947, using his farm horse and cart to deliver milk.