A whistleblower, reported to be a senior figure at Coty’s Seaton Delaval operation, has claimed that Brexit ‘uncertainty’ is one of the drivers behind Coty’s plans to shut the factory.
According to ChronicleLive, the source said another motivating factor is that, out of all of Coty’s factories, Seaton Delaval is the cheapest to shut down with lower redundancy payments and penalties for a non-unionised site.
The whistleblower is also reported to have said that Coty will benefit from a big tax write-off of high value assets.
The proposed closure of the site is due to be debated in the House of Commons today, spearheaded by Labour Blyth Valley MP Ronnie Campbell, who says he will draw on the whistleblower's comments.
Campbell told Cosmetics Business: "Not only will 450 people lose their jobs this will have also a devastating impact on their families too, in addition, the wider impact on the community with at least 100 contractors in the local area will also lose significant business."
The debate is currently scheduled to follow another on exiting the EU and global trade.
Campbell explained he hopes to at least "get a better redundancy package for the staff, government assistance and highlight to the minister the difference in workers’ rights with EU countries."
However, Campbell is aware of the scale of taking on a global conglomerate and expressed
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