Troubled co-operative Dairygold was last night facing the threat of a strike after its 2,500-strong workforce voted overwhelmingly in favour of industrial action in a union-organised ballot. Barry O'Halloran reports.
Local SIPTU branch secretary Mr John Cooney confirmed that, when the votes were counted yesterday, between 80 per cent and 90 per cent of them favoured taking industrial action including striking.
Mr Cooney said last night that the union would notify the company of the ballot's result and intended putting a strike committee in place. The dispute centres on redundancies and proposed changes in work practices at its plants.
Dairygold said late last year that it intended to cut its workforce by 500. Over 490 workers agreed to go voluntarily, but there were a handful who were made redundant. Most of those involved left before Christmas.
The redundancies were part of a cost-cutting plan that Dairygold launched in 2003 after its profits collapsed from €25 million to €4 million. It sold two meat plants and intends selling its remaining two. It also wants to reduce the number of its milk processing facilities from four to two. These measures will leave it with 1,500 workers from an original tally of 3,000.
A spokesman said that, if it failed to make these changes, the company would be losing €20 million a year within five years.
Mr Cooney said last night that SIPTU accepted the co-op faced serious problems.
"But they have effectively torn up a union-management agreement that allowed us to discuss any proposed changes with them," he said. "People can see what is happening and the consequences of that can be seen in the result of the ballot."
In a statement, management said there was nothing in dispute between Dairygold and its workforce that justified industrial action.
"Any issues arising can be resolved through local discussion and in the upcoming Labour Court hearing, which has jointly been requested by Dairygold and SIPTU," it said.
A spokesman told The Irish Times that the co-op did not accept that it had "torn up" the existing union-management agreement. He said that it had circulated copies of a draft new deal to the workforce.
