Nestle will lay off 51 casual workers for a fortnight at its York factory, rather than the 90 announced last week in the wake of a production halt of its latest product, chocolate-covered pretzel Flipz.

The figure was arrived at today after crucial talks between management and the Unions, but the compromise still leaves the GMB union unhappy.

Graham Waite, Yorkshire and North Derbyshire regional officer for the GMB, emerged from the discussions to say that if some people in the assortments department had not been allowed to extend their contracted hours, another 25 Flipz casuals would be able to stay.

Altogether, 130 people, 90 of them casuals, were working on both chocolate and white fudge versions of the new "Jekyll and Hyde" Flipz.

Now 80 will stay on, absorbed into various departments at the factory, including assortments, Aero and Polo, but the balance of 51 casual workers will be laid off "either next weekend or early next week," said Mr Waite.

But they are likely to be taken on again after a fortnight to cope with the seasonal preparation for Christmas. The criterion for choosing which casuals would stay and which would be laid off was still being discussed, he said.

Mr Waite said: "I am not happy that people have had hours extended while some are being laid off. If hours had not been extended, around 25 would not lose a fortnight's pay.

"Knowing that there were potential problems with Flipz, they should have taken it into consideration before agreeing to extended hours for some. The work should be shared out more evenly because a continuity of workforce means continuity of production and continuity of lives."

Nestl, which insists that sales of Flipz are going well, plans to resume production with a scaled-down staff of 45 in August.

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