146 jobs to be lost at Lakeland Dairies

Siptu has called on Minister for Agriculture Mary Coughlan to finalise a support package for 146 Lakeland Dairies workers who…

Siptu has called on Minister for Agriculture Mary Coughlan to finalise a support package for 146 Lakeland Dairies workers who will lose their jobs in a €10 million rationalisation plan.

The Cavan/Monaghan-based co-operative, which employs 700, said yesterday it planned to save €8.5 million annually by closing its milk-drying operations at Lough Egish, Co Monaghan, and all its agri-stores in Cavan, Monaghan, Leitrim, Longford, Louth, Meath and Westmeath.

Its pig-and-poultry feed mill and grain intake site at Castlebellingham, Co Louth, will also be sold at the end of the year.

The company, the second largest milk processor in the State, said it would take a decision next spring on whether to amalgamate or consolidate all its animal-feed manufacturing at Lough Egish and close its Killeshandra feed plant.

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"Arising from the restructuring programme, the co-operative regrets that redundancies will be necessary. Approximately 146 employees in total will be affected, including 60 at Lough Egish in 2007, 22 at Castlebellingham and the remainder across the wider organisation including agri-trading stores," said a company statement.

Siptu branch organiser Jim Mullery said the workers who were to lose their jobs were devastated. Some would have over 20 years' service.

"The impact will be most profound for the community of Lough Egish in Co Monaghan in that Lakeland Dairies has been the main employer," said Mr Mullery, whose union represents most of the Lakeland employees.

"Siptu will be calling on the Minister for Agriculture to finalise arrangements for a support package for the dairy industry to help alleviate the full impact of the planned closures by Lakeland Dairies."

Siptu is also to seek an early meeting with the Minister for Enterprise to urge him to take whatever action is necessary to ensure that replacement jobs are available when the closures take effect.

The restructuring plan, which its chief executive Michael Hanley said had to be taken to protect the company, cited volatile dairy markets, intense competition, increased energy costs and reduced EU supports as the reasons for having to take such action. "This plan is necessary to sustain a viable dairy industry for the future in the northeast of Ireland. This is about sustainability."