Tesco urged to promote workers’ redundancy battle
The gates at Castlemahon Food Products poultry plant close for the last time this evening, leaving more than 300 workers on the dole.
The company developed into the one of the biggest suppliers of oven-ready chickens and turkeys in the past 50 years.
The closure of the factory is expected to affect a further 300 workers in the local economy.
Efforts by the liquidator to find a new owner failed. A feasibility study costing €15,000 was carried out by Shannon Development and the County Enterprise Board on behalf of local chicken suppliers and growers who expressed an interest in taking over the plant.
However, when the costs were spelt out, the group, made up mostly of farmers, decided it would not be financially viable to proceed.
Last year 150 workers laid off as part of a voluntary redundancy deal who agreed to leave got five weeks pay for every year of service.
Talks were taking place between the O’Kane Group of Ballymena, Co Antrim, former owners of Castlemahon and the ATGWU last night to try and get an improvement on the statutory two weeks’ payment on offer.
Senator Michael Finucane, FG, also had talks with Tesco, one of the O’Kane’s biggest customers. Mr Finucane said he has discussed the Castlemahon redundancy issue with management.
He said: “Castlemahon have been a huge supplier to Tesco and I assume the O’Kane company will still continue to supply Tesco from their operation in the North of Ireland. I have asked Tesco as a goodwill gesture to ask the O’Kane organisation to improve on the two-week redundancy offer. O’Kanes set a precedent last year when they gave five weeks redundancy to 150 workers. I think it is unjust now for them not to make an improved offer on the redundancy. I am due to have more talks with Tesco management today.”
The ATGWU are also fighting for a better redundancy deal for the workers.
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