Distribution review shows overcapacity
Grocery retailer Morrisons will talk to unions in an effort to avert a strike over the restructuring of its warehouse and distribution network

The initiative follows last week's letter from management to its workforce telling them that a review of operations, following the acquisition of Safeway, had revealed overcapacity in the distribution system. As a result, the future of two of Morrisons' seven depots is in doubt. Morrisons employs about 7,000 distribution staff.

The T&G and GMB unions reacted angrily to the news and both expect members to vote for strike action in separate ballots. The results will be revealed next week.

Morrisons has confirmed that it has carried out a review of the distribution network, but has declined to comment on the findings until it has had talks with union officials. However, the retailer said that it will consult fully with unions ahead of any decisions on its operations.

Topics