Warehouse workers for XPO spin-off RXO said they had been betrayed after they were left allegedly facing bare minimum redundancy terms when its Dewsbury site closes.

The workers, who handle freight for Tesco, Argos, John Lewis and Amazon, claimed to have been stabbed in the back after facing minimum severance terms despite decades of service, while HGV drivers at the site have been offered enhanced redundancy terms.

According to the union Unite, RXO is closing its Shawcross warehouse, which provides freight services for the major retail outlets, in a cost-cutting exercise.

It claimed RXO had said non-drivers were not entitled to enhanced redundancy under the TUPE rules when they transferred from UPS in 2024.

Around a third of the workers are HGV drivers who are being offered enhanced redundancy packages, while the rest are being offered the statutory minimum.

Unite general secretary Sharon Graham said: “RXO’s betrayal of these loyal and longstanding workers is absolutely disgusting and is nothing more than naked corporate greed. Unite will continue to apply maximum pressure on the company to treat these workers fairly.”

Unite regional officer Jessica Sangha added: “RXO’s behaviour towards these dedicated workers is nothing less than a stab in the back. Not only are they being made redundant but RXO, which brings in billions of dollars, is refusing to provide redundancy terms that it has offered to drivers and previously offered to non-drivers.

“RXO’s clients Tesco, Argos and John Lewis will not be happy that they are associated with a company that treats its staff so badly. Unite will not rest until the company comes back to the table with a reasonable offer.”

RXO had not responded to our request for a comment about the closure as we went to press.

In 2022, XPO spun off its brokerage platform to the separate company RXO.