GMB seek talks with XPO Logistics following announcement of warehouse closure
GMB seek urgent talks with XPO Logistics over decision to close Neasden warehouse in March 2019 as M&S announce moving operations to Welham Green
This news will be devastating to the loyal, hard-working employees and their families at XPO Logistics, Neasden, says GMB London
GMB, the union for workers at XPO Logistics, are holding emergency talks with the company this week after yesterday’s announcement that they would be closing their warehouse in Neasden in March 2019.
Over 360 staff, 200 of which are GMB members, will be effected by the decision, that came after Marks & Spencer, who also lease the site, announced they will be moving their operations to a new site in Welham Green, Hertfordshire. [See notes to editors for copy of announcement my M&S]
The staff, some of who have given up to 30 years of service, will be expected to either transfer to the new site, other XPO sites, or they will be made redundant.
Tony Warr, Regional GMB Senior Organiser said:
“This news will be devastating to the loyal, hard-working employees and their families at XPO Neasden, North London.
“The site has been successfully providing a warehouse and distribution service for Marks and Spencer for many decades and it looks as though the workers are going to pay the ultimate price due to the failures in the retail market of Marks and Spencer.
“A major problem is that Marks and Spencer lease the site, not XPO, and Marks and Spencer will not be renewing their lease. One of the questions we will be asking is whether XPO can lease the site and hopefully attract other business in order to mitigate the loss of the Marks and Spencer work.
“We feel there is sufficient time to do this given the date for the closure is over a year away. If successful, this will send a positive message to the Neasden workforce and also to workers at other XPO sites that their employer does not simply intend to walk away from such a dreadful situation."
ENDS
Contact: Tony Warr 07710 631 336 or GMB Press Office 07970 114 762
Notes to Editors
Announcement – 16th January 2018
Supply Chain and Logistics Network Announcement – Neasden
In November, M&S CEO Steve Rowe set out steps to deliver a five-year transformation journey to make M&S special again, putting the customer truly at the heart of the business.
The transformation plan focuses on how to better serve customers through the new digital and existing store channels at lower cost – a key part of this plan is how the logistics network is redefined in order to fully support their future business.
As part of this journey, M&S have determined that moving towards an NDC single-tier network, alongside their EDC operation in Castle Donington, will provide the best service to their customers.
This approach ensures products destined for their stores are held in fewer locations, improving product availability and speed of service whilst reducing operating costs.
Today M&S have announced plans to establish a South East National Distribution Centre in Welham Green as part of the plan to deliver a simplified and flexible network.
The site at Welham Green will become operational in the first half of 2019 and then build up to full capacity over two years.
It has been designed to handle 16 Boxed and Hanging T Departments and will ultimately pick & dispatch 70m items, whilst cross-docking an additional 50m to stores.
As a result of this opening, M&S has decided to withdraw from the Distribution Centre here at Neasden in March 2019.
This withdrawal coincides with the end of the current lease agreement at Neasden following a full commercial review of the site versus the M&S future requirements.
Unfortunately, a number of factors including cost, location and size, meant renewing the lease was not viable – this is not a reflection on the quality and output of the work done by the colleagues in Neasden but the result of a wider strategic review.
Over the next 15 months the site at Neasden remains a critical part of the M&S logistics network and we will continue to work closely together with them to deliver a great service to both our stores and our customers as we have always done.
The work that is currently performed here in Neasden will ultimately transfer to other RDCs in the Network where there is capacity - this transition will take place from January until the site closes in March 2019.
As previously mentioned, this decision is not a reflection of the management and colleagues working at the site - M&S recognise and appreciate the long-standing relationship and service delivered over the years, however the retail world continues to change apace and the M&S business has to change accordingly.
M&S will work closely with XPO and DHL on the next phase of this plan including consultation and we are committed to updating you on future progress.
Thank you for your support.
Gordon Mowat,
Clothing and Home Supply Chain and Logistics Director
