Lincolnshire Co-op has proposed cutting 27 pharmacy warehouse worker jobs as part of a wider “programme of business transformation”.
The co-operative’s pharmacy warehouse in Lincoln employs 80 people, and “one part” of their work is “to supply prescription medication to the co-op’s pharmacy branches”.
It said on June 19 that it is “proposing moving the supply of prescription medication to existing third-party suppliers which already make deliveries to its pharmacies”.
Lincolnshire Co-op told C+D that it would not be moving this operation to a hub and spoke model but would not share “any further detail on any proposed suppliers”.
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The co-op said a “collective consultation” has begun with 42 of the 80 workers based at the warehouse, on a proposal “to remove 27 roles”.
It added that it is working with the workers’ representatives, the Union of Shop Distributive & Allied Workers (Usdaw), to “explore all options and mitigate compulsory redundancies”.
Lincolnshire Co-op told C+D the proposal “doesn’t impact any colleagues” in its 42 pharmacy branches and said “providing a community pharmacy service to our communities continues to be a key priority”.
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“We have plans to invest in our pharmacy business, including into new systems for our pharmacies and will continue to introduce new services for our patients,” it added.
Usdaw area organiser Maryann Matthews said the union will now “enter into consultation talks with the company” and “interrogate the business case for the proposed changes”.
“In the meantime, we are providing our members with the support, advice and representation they need through this process,” she said.
“Difficult decisions”
Lincolnshire Co-op has also proposed changes to roles at its Support Centre in Lincoln, and has made changes to its property portfolio to “focus on healthcare and housing”.
It reported that its turnover fell by 1.2% and trading profit reduced by 35% in the first six months of its financial year because of “economic conditions and significant rising costs”.
It said the new proposals have been made to ensure the retailer is “sustainable in the long-term for the benefit of its colleagues, customers, members and communities”.
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And it added that it will make a “substantial investment in systems and technology to make the Society more efficient”.
Lincolnshire Co-op chief executive Alison Hands said that while “significant increases in the National Living Wage and National Insurance” have contributed to rising costs, the co-op does “have a strong balance sheet and reserves, as well as an investment plan”.
“To enable us to achieve our plan, we also have to make sure we are managing our costs carefully, balancing profitability as well as alignment with our strategy and community purpose, and our future direction and growth,” she said.
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“It does mean having to take difficult decisions, including reviewing our ways of working. These are processes that are never easy, and we’d like to thank our teams for their professionalism and support for each other during this time.”
It follows Lincolnshire Co-op last April giving some 550 pharmacy staff a pay rise that averaged at 5.8% per colleague.
The co-op joined the Company Chemists’ Association (CCA) as a member in January 2025.
