Distribution depot to cut 150 jobs

Up to 150 people are expected to lose their jobs at a Dublin food distribution depot after food wholesale giant Musgrave confirmed it is not renewing its contract with the firm.

Musgrave said, however, that it will be creating 134 new jobs across its own distribution network to cope with the extra volumes of business it expects arising out of the decision.

The Dublin depot staff, based in Blanchardstown, were briefed on the announcement yesterday.

Their depot is operated by Wincanton on behalf of Musgrave.

Staff were told the depot is facing closure following the decision by Musgrave to supply all of its stores directly from its Musgrave Retail Partners Ireland distribution network.

“Wincanton is consulting closely with all affected employees and their recognised representatives,” a spokes-person for Wincanton said. “The company is now entering a 30-day period of consultation with its employees and Siptu.”

Musgrave said it will not be renewing its contract with Wincanton when it ends in September.

“Regrettably, this will result in the potential redundancy of 150 of their employees at the Blanchardstown distribution site,” a Musgrave spokesman said.

He said the company’s decision to supply all of its stores from its Musgrave Retail Partners Ireland distribution network — which has depots in Cork, Kildare and Dublin — will ensure the “optimum use of the existing distribution network”.

“Musgrave will be hiring approximately 134 new employees across their existing distribution depots located in Kilcock, Fonthill and Cork,” he added.

The Musgrave Group owns the SuperValu, Centra, Londis UK, Daybreak and Mace brands, among others.

Last month it re-branded all 24 Superquinn stores as SuperValu, and is embarking on a €20m in-store investment programme on the former Superquinn network. SuperValu’s network has now been expanded to some 223 stores nationwide with a turnover of €2.6bn, employing 14,500 employees.

In 2012, the Musgrave Group recorded sales of €4.9bn, up 11% on the previous year. It recorded pre-tax profits of €72m, an increase of 3%, and had combined retail sales of €7bn, up 9% on the previous year.