Morrisons plans to end its relationship with at least 83 property maintenance suppliers, threatening over 1,000 jobs.
The grocer wants to replace its suppliers, many of whom are based in its hometown of Bradford, with a single provider for repairs.
Morrisons is also planning to lay off up to 50 property maintenance workers at its headquarters in Bradford and around the UK.
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Ken Morrison, the chain’s co-founder, took on the suppliers, some of whom had worked with Morrisons for decades.
The workers have been told their contracts are likely to expire in July, affecting more than 200 providers, which include subcontractors, as well as more than 100 head office employees.
Several suppliers said their contracts were terminated in a brief video call during which they were unable to ask questions.
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Some Morrisons employees will be transferred to the new sole provider, City Facilities Management, which is headquartered in Glasgow but has offices throughout the United Kingdom.
Some current suppliers may be converted into subcontractors.
Morrisons said it expected 120 job cuts in total, but vendors said they had been given no assurances and expect many more to go.
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Morrisons said: “We are proposing some important changes and improvements to our maintenance model through a new national partnership with City FM, but we anticipate many of our existing suppliers to continue to work for Morrisons under subcontracting arrangements.
“We are endeavouring to communicate and execute these changes carefully and thoughtfully with all those affected.”
Source: Retail Gazette
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