Greggs has announced a £19 million dividend to shareholders just days after revealing plans to close its food production facility in Kelso, a move that will see more than 700 jobs lost across the UK.
The closure is part of a wider restructure affecting Greggs factories across the country. For the Borders town of Kelso, the loss of the local plant is described as a tragedy, with many towns in the area still recovering from the decline of the textile trade that once employed thousands.
When Greggs took over the major Pettigrews food factory in Kelso, it was seen as a lifeline for hundreds of local workers. Now the company has decided to shut the plant, adding to a series of job losses hitting Scotland in recent months.
Scotland's food industry under pressure
While large industrial sites like Grangemouth often dominate headlines, Scotland's food industry is also experiencing growing job losses. The closure of part of the petrochemical plant on the Forth has been described as devastating for the area and a blow to Scotland's reputation for skilled jobs in engineering, energy and manufacturing.
The Kelso closure highlights the increasing pressure on Scotland's food sector, which has long been a source of national pride alongside industrial might.
Concerns over shareholder payouts
Despite the serious impact on towns like Kelso, Greggs bosses are paying a healthy £19 million dividend to shareholders just days after announcing the job losses. The firm has a loyal customer base in Scotland, and if it appears to be destroying jobs in communities like Kelso while enriching wealthy shareholders, that is described as a terrible look.
Greggs is urged to explore every avenue to keep the Kelso plant open, or Scotland's love affair with the steak bake and the yum yum could start to go stale.
Steel industry concerns
Separately, steelmaking is said to be vital to the national economy. The UK Government nationalised the steelworks at Scunthorpe earlier this year, saving more than 2000 jobs. It is an expensive business, but at a time of global uncertainty and war in Europe, it is vital the UK retains the ability to produce steel from scratch.
Scotland was once home to several steel plants, but years of industry downsizing and botched privatisations have left the Dalzell plate mill in Motherwell as the last one standing. It is due to resume production this month after almost six years idle, but unions are concerned its private owners might not keep it going for long.
The plates produced there are a key component of naval shipbuilding on the Clyde. The UK and Scottish governments must ensure Dalzell gets the work it needs to stay open for the long term.
