The closure of the Tip Top bakery on Oakdale Road in Gateshead is devastating news for its workers says the Mayor of Lake Macquarie City Council, Cr Kay Fraser.

The Mayor said today that on hearing the news of the shutdown in July the first thing that concerned her was the loss of what could be almost 80 jobs to people in the City, and the flow on effect it could have.

“I am hoping, like everyone else, that alternative employment can be found for all of these loyal workers at Tip Top which has been a wonderful business for a very long time in our City,” said the Mayor.

Tip Top today released a statement expressing disappointment at the decision to close their Gateshead facility, at the same time outlining the reasoning for their decision:

“With its core bread business in decline, Tip Top is regrettably stopping production at its Newcastle facility in early July, re-purposing the site to a depot. All Newcastle volume will be transferred to Tip Top bakeries at Bendigo and Chullora, ensuring capacity is maximised across the existing network. Newcastle based drivers, merchandisers and sales team members roles will not be impacted by the site changes.

Tip Top is a major manufacturer and distributor of quality bakery products across Australia, with over one million fresh bread loaves delivered daily to Australian and New Zealand customers. However, market conditions in Australia remain challenging and as part of a continued drive to create sustainable operations, Tip Top has made the difficult decision, after careful review, to reshape its bakery network in Gateshead.

The change will see 79 people affected and the business is already underway with one-on-one discussions around redundancy packages and re-deployment opportunities, as well as support from the business and third party group, PeopleNet who will provide career transition services to assist every employee achieve their personal goal.

With growing volumes in bread alternatives plus new bakery products, together with improving operations and efficiencies across its network, Tip Top remains strongly committed to the Australian market.

While any business decision that impacts its people is always a very difficult one, this change ensures Tip Top is operating in the most efficient way to compete as a daily fresh business in a dynamic and changing market.”