Seanad debates
Thursday, 1 March 2007
Poultry Industry
2:00 am
Michael Finucane (Fine Gael)
I welcome the Minister of State, Deputy Michael Ahern, to the House. I wish to emphasise what has occurred in respect of Castlemahon Poultry Products Limited. For many years, west County Limerick was synonymous with poultry processing, but a short period has witnessed the ending of that industry. Some 500 jobs have been lost by Kerry Foods and Castlemahon Foods, leading to hundreds of indirect job losses.
Following the appointment of a liquidator in late 2006, Castlemahon Poultry Products Limited's 300 plus workers were made redundant because the plant could not be sold. Having lost their jobs, they were confronted by the minimum two-week statutory payment. In February 2005, Castlemahon Foods, which is owned by the O'Kane group from Ballymena in County Antrim, made 150 workers redundant and put together a restructuring plan for the company. The workers received a two-week statutory payment and three additional weeks' payment from the O'Kane group. Therefore, one can understand the disappointment felt by the remaining workers when the company closed. Despite many discussions, the O'Kane group was unrelenting and made zero contributions to redundancy payments after the closure in 2006.
In an attempt to pressure the group to make an additional payment, peaceful protests were organised outside Tesco's, one of the major companies to which Castlemahon Poultry Products Limited provided produce, but they were unsuccessful. During talks at the Labour Relations Commission, Mr. Foley, an astute person, had his hands constrained. He spoke on behalf of unemployed workers while the O'Kane group was protected by the liquidator. As such, he was dependent on the group's goodwill, but none was forthcoming.
In a recent reply made in the Dáil, the Minister of State said that he understood how the workers who received two weeks' payments felt in light of those who received five weeks' payments a year previously. I understand that a group was due to meet him recently. The workers' union, the ATGWU, has been good to them throughout the process. The group and Mr. Seán Kelly of the ATGWU made a proposal regarding the State's entitlement as a preferential creditor to a 40% refund of the redundancy payments upon the sale of the company's assets. The group requested that the State consider redistributing that 40% among the workforce.
The Minister of State may point to legislation, but not many Irish companies lose jobs through the appointment of a liquidator. Recently, it was possible to move amending legislation on health insurance at short notice. If the Minister of State is willing to do something on behalf of the workers, should it not be possible to amend legislation to accommodate the liquidation? It would be a gesture of goodwill on behalf of the Government to the workers, many of whom have not found alternative jobs. Despite statements regarding full employment in the country, west County Limerick has suffered a rash of job losses.
I look forward to the Minister of State's response to determine to what degree he can assist the workers. Their request to have the 40% refund redistributed is reasonable and valid and would not constitute a loss on the State's part.
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