Cork engineering firm agrees wages schedule for employees

ONE of the country’s biggest earth-moving firms has agreed a schedule of wage payments to staff — some of whom haven’t been paid for up to three weeks — following the appointment of an interim examiner.

Cork-based Howley Civil Engineering Ltd, which employs up to 430 people, also guaranteed wage payments for the next 10 weeks and indicated it was hoping to trade out of its current difficulties.

The news emerged last night following the High Court approval of the appointment of Declan McHenry as interim examiner to Howley on Wednesday.

Counsel for the Carrigtwohill-based company, Declan Murphy, told Ms Justice Mary Finlay Geoghegan that the firm is engaged in significant contracts and it is important these be completed to ensure their value.

The firm, which worked on the Jack Lynch Tunnel, Mahon Point, East Gate and Watergrasshill projects, is working on the St Patrick’s Street Dunnes Stores revamp, the ESB power station project in Aghada and on the controversial M3 project near the Hill of Tara.

The judge was told the company is insolvent and unable to pay its debts due to several factors, including the slowdown in the construction sector and the incurring of additional costs on motorway and retail projects.

Among its largest creditors are Caterpillar Financial Services Ireland plc, which is owed €5.5 million, and AIB Finance and Leasing, owed €3 million.

Caterpillar initiated proceedings some weeks ago to recover 17 machines, each with an estimated value of €200,000 which were leased to Howley’s.

But the judge was told that Howley directors believe the firm has very good trading prospects. Following the appointment of the interim examiner, the firm agreed a schedule of staff payments.

SIPTU, which represents some 350 Howley workers, said the first of those payments is due in staff bank accounts this morning. Another payment is due on Monday with the third due next Friday.

SIPTU spokesman Pat McGrath said: “We are liaising with company on a daily basis. We are endeavouring to ensure our members are being looked after.”

He also said the company has indicated to the union that it is confident its current difficulties are temporary and that it can trade out of the problems.

The matter is due back before the High Court within a month.

The company was not available for comment yesterday.

The company was set up in 1993 and focused on plant hire. But rapid growth led to the incorporation of Howley Civil Engineering Ltd in 1996 which focused on construction and civil engineering.

Its principal is Michael Howley, who lives near Blarney.

His company has worked on some of the biggest construction projects in the country, including the abandoned multi-billion Amgen project in Carrigtwohill.