Glanbia redeploys staff to Tipperary plant

GLANBIA management yesterday announced it will re-employ 60 staff full time and 160 others on a part-time basis after fire gutted the plant in Co Offaly.

The fate of 60 other workers on protective notice at the plant is not yet known.

The company has been urged to rebuild its pigmeat processing plant in Edenderry but a leading analyst has predicted that was unlikely to happen.

The redeployment plan will see workers employed at the company’s factory in Roscrea in Co Tipperary.

SIPTU, the Irish Farmers Association and politicians called for the rebuilding of the Edenderry plant.

Glanbia, the country’s largest pigmeat processor, said the immediate focus was on addressing the short-term logistical problem and it was far too early to say if the plant could be rebuilt.

Edenderry is one of its two pig meat processing plants. At the other in Roscrea production is being rescheduled to accommodate supplies that would otherwise be processed at the Offaly site.

Arrangements are also being made with third parties to process supplies over and above Roscrea’s capacity.

NCB markets analyst Paul Meade said he believed, given that pork is non-core business for Glanbia, the group is unlikely to rebuild the Edenderry plant, but will opt instead to concentrate investment in expanding its remaining facility in Roscrea.

“The persistent low margin within primary pork processing and the likely contraction in Irish pork production over time, due to higher costs and new environmental regulations also suggest that further industry capacity reduction over time is inevitable,” Mr Meade said.

He said pork processing accounts for less than 4% of Glanbia’s total group operating profits (including associates), despite processing 50% of the national weekly pig supply. As such, the loss of the plant is unlikely to impact earnings as insurance should cover consequential losses arising from the fire.

Supervisors at the Edenderry plant, which processed 10,000 pigs a week, yesterday met individually with the 280 employees who have been issued with protective notices as a result of the fire. A meeting of the collective workforce will be briefed today on the contingency plan.

Speculation has arisen that many of the workers could be bussed to work in the modern Tipperary plant. There have also been calls for special support for the more than 100 foreign national staff that face rent demands before the end of the week.

SIPTU branch secretary Sean Nolan said the union was seeking cast-iron guarantees from the company about the rebuilding of the factory and generous offers of redundancy for those staff members who cannot be redeployed.

Local Fine Gael TD Charlie Flanagan said Glanbia should guarantee a return to work at the earliest opportunity and set about rebuilding the plant.

But the Fine Gael TD Olwyn Enright, said the company had told her there are no guarantees about rebuilding the factory in Edenderry.

Gardaí have meanwhile stated that they believe the fire, which extensively damaged the plant in Edenderry, was accidental. It is understood that the source has been identified as an electrical fault in the roof area.

Meanwhile, Glanbia said it will deal with all pigs booked in this week and no pigs will be rejected. Glanbia had spoken to suppliers about the new schedule now in train.

IFA Pigs and Pig-meat Committee chairman Michael Maguire said Glanbia had undertaken to increase slaughtering at its Roscrea plant by 400 extra pigs on weekdays, and to slaughter 7,200 at the weekends, to accommodate the pigs normally taken into the Edenderry site.

Mr Maguire said the plant in Edenderry has to be rebuilt as soon as possible, adding that producers must be guaranteed slaughter facilities. Having 50% of the national kill dependent on one plant is too high a concentration and too high a risk, he said.

Leinster East Fianna Fáil MEP Liam Aylward urged Glanbia to publicly commit to reopening the factory in as short a timeframe as possible.