UP TO 150 workers at Tesco's Magor Distribution Centre could be made redundant as the retail giant concentrates its delivery operations on two new super hubs.
Today's announcement revealed Tesco, which employs more than 800 people at its Monmouthshire site, is slimming down the number of staff there because some of the work is going to a new centre at Reading.
When this new site opens in May the Magor site, which handles the delivery of dry produce to stores as one of 32 UK distribution centres, will see a reduction in the amount of produce coming through its doors.
A second new hub in Dagenham, due to be up and running from June, will have a knock-on effect at other sites across the UK.
Harlow in Essex, Weybridge in Sussex and Chesterfield will be shut completely, while Magor, which houses products like ketchup and gravy powder, is taking a staff cut like Welham Green in Hertfordshire.
A Tesco spokeswoman said the chain was still committed to Magor and it is looking at offering relocation to Avonmouth for some of the staff affected and alternative roles, including local in-store vacancies.
She said a 90-day consultation period will take place, where the options will be worked through with each individual, their representatives and the union USDAW.
She told the Argus 150 job losses would be the absolute maximum.
She added: "As part of a strategic review of our distribution network, we have announced plans to open a new grocery distribution centre in Reading, which will result in a slight reduction in our Magor operation. We have informed all affected colleagues, and we’re working with them and their representatives to support them through this difficult time.”
MP for Newport East, Jessica Morden, said: "The scale of the job losses is bad news for these workers and their families. In a press release Tesco talk about a “slight reduction in operations” at Magor as they expand in the South East which will be cold comfort locally. "I do not consider 150 potential job losses as slight. I urge Tesco to work with the Unions to avoid compulsory redundancies and to help those affected.”
Tesco said the two new centres will reduce road miles by 46,000 per week, cutting carbon emissions by 61 tonnes over the same period.
Between the two new super sites, around 1,900 new jobs will be created.