Pig processors seek aid amid hundreds of job cuts

Nearly 1,400 workers at meat processing plants around the country have been put on protective notice following the recall of Irish pork products at the weekend.

In Co Offaly, Rosderra Meats put 850 workers on protective notice and warned there would be immediate lay-offs across all of its plants at Edenderry, Co Offaly, Roscrea, Co Tipperary, Clara, Co Offaly, Jamestown, Co Leitrim, and Stradone, Co Cavan.

The company is one of Ireland's largest producers of pigmeat - accounting for approximately 50 per cent of the Irish pigmeat industry - two thirds of which is exported abroad.

Rosderra Meats was established by the management team that acquired the Glanbia Meats Division in February 2008. In a statement, Rosderra said it regretted having to make today's decision but said it had no alternative given the situation.

Employees working at other producers around the country were also warned of possible job losses as a result of the recall.

Tonight Siptu reported that a further 500 of its members have been laid off from plants in Counties Cavan, Monaghan, Kilkenny, and Waterford.

Meat producers have called on the Government for an aid programme for those affected by the recall.

"This decision has huge financial implications for the processing companies that are involved,” Cormac Healy, director of the Irish Association of Pigmeat Processors, said this morning. “We need immediate assistance from Government," he said.

"There are indications from my members already that between debtors list and stock that they believe is in the system, we're looking at a bill in the region of €100 million," added Mr Healy. "We're facing a major financial crisis, a major liquidity problem."

He said the slaughter of pigs will not resume until the Government pledges aid.

Taoiseach Brian Cowen and Minister of Agriculture Brendan Smith held talks with members of the processing industry to try to re-start production as soon as possible.

Speaking tonight Mr Cowen, said that the Government would be seeking assistance from the EU to fund a compensation package.

“We will be looking for EU funding or co-funding. The purpose of what we are discussing is to create the conditions so that processing can be resumed,” said Mr Cowen.

“There are real difficulties and we need to see how we can resolve them,” he said.

“Obviously we have begun discussions with producer interests. Detailed discussions are going on now to see in what way we can assist,” he added.

Mr Smith said the Government wanted fresh pork produce back on supermarket shelves as soon as possible and workers back in plants.

But both refused to be drawn on whether the State would bail out the sector with a compensation package.

The State's largest union Siptu warned today that thousands of jobs are at risk in the Irish pig industry as producers said they were facing a €100 million bill. An estimated 100,000 pigs will have to be destroyed due to the crisis, which led to the recall of all Irish pork products from up to 30 countries worldwide.

Siptu said that any rescue package agreed upon should include employees as well as producers and processors.

Fine Gael said the lay-offs at Rosderra would have a devastating impact on the local area.

“The company is one of the biggest employers in the area and the job cuts in Edenderry in particular will deal a savage blow. These lay offs will not only affect the workers directly, but also a further 6,000 jobs throughout the midlands that are linked with the factory. It is no exaggeration to say that these jobs are vital to the area. Such massive cuts will cripple the region," said Fine Gael Laois/Offaly TD Olwyn Enright

The Labour Party meanwhile warned that today's lay-offs may be the first in a long line of such announcements over the days and weeks ahead.

"This crisis could not have come at a worse time. As far as the producers and processors are concerned, Christmas is the busiest time of the year with just about every household purchasing a traditional ham, and there is now huge uncertainty as to whether the industry will be in a position to supply the demand this year," said Willie Penrose, the party's enterprise spokesman said.

"From the point of view of the industry, it is bad enough that the sale of Irish pork has had to be curtailed, but unless drastic action is taken, there is now a risk that the industry will suffer permanent damage," he added.

IFA president Padraig Walshe said he hoped the industry would be fully operational tomorrow under the supervision of the Department of Agriculture, with all the necessary testing and controls in place.

Singapore and South Korea today became the latest to suspend the import and sale of all Irish pork and pork products with immediate effect. In all, 25 countries import Irish pork products.