WORKERS at Chard's biggest emp-loyer, Oscar Mayer, have been told that it would "not be prudent" for them to receive pay rises while the company is struggling to make a profit.

A company statement has said there will be a freeze on wage increases in the annual pay review as the past year has been a difficult one for the Chard ready meals factory with it making a "significant loss".

"We continue to be hit hard by raw material prices and utility costs and despite all the good work reducing giveaway, improving yields and reducing waste, the environment remains difficult," the statement reads.

Bosses of the 800-strong workforce at the Furnham Road site have been looking at cost-saving measures including the reduction of indirect labour and the increase in prices for customers.

And the statement added: "We are now showing some signs of these measures having an effect with the early part of this financial year showing a small profit.

"However, summer is almost upon us and as we are all aware, this will adversely affect our sales and profit, so we must be cautious during the next few months.

"If we are to achieve a profit this year then it would not be prudent for us to increase pay.

"It is key for us to underpin the long-term security of the site here at Chard by returning a profit during the next year. This will deliver the most secure future here at Chard for us all."

Only recently it was revealed that deteriorating trading in the UK ready meals industry had been blamed for an investor, Icelandic food giant the Alfesca Group, deciding to pull out of a move to buy Oscar Mayer.

Bosses reacted quickly to reassure staff that it would be "business as normal" despite the takeover blow and they are now saying that the pay situation would be reviewed on an ongoing basis.

"We recognise all the hard work and effort that everyone puts into the business here and we will review the situation on an ongoing basis to identify if there is anything that we offer as we go through the year," the statement reads.

"This is a tough decision at a tough time when clearly every penny counts.

"We will try and be as fair as we can and recognise everyone's efforts should the performance of the business be appropriate."

A spokesman for Oscar Mayer told the News that staff had been informed of the situation last week.

8:26am Wednesday 21st May 2008

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