JOBS WILL be lost at Wexford Creamery as part of significant cost-cutting measures to be put in place to reduce its annual operating costs by almost €3 million.
Wexford Creamery employs about 100 people, but this number will be reduced in coming months, as redundancies are part of what the company has described as “a comprehensive rationalisation plan . . . to secure the creamery’s future viability”.
The creamery is to implement other cost-cutting measures, including pay cuts and outsourcing of its milk collection system. Staff at the company’s Rocklands base in Wexford town were informed by management at meetings yesterday that the plan is “critical for the long-term well-being of the business”.
“Wexford Creamery’s board and management have established and approved a viability plan for the business that will help to restore the creamery’s operational performance to a sustainably profitable position, returning a competitive milk price,” said interim chief executive Michael Cronin.
Employees were told yesterday that the company’s cost base was well above the industry norm and the viability plan will mean a cost reduction of €2.7 million from the current annual operational cost.
Wexford Creamery said it will be achieved through “redundancies, reduced pay costs, better working and work flexibility arrangements, outsourcing of the milk collection system, improved energy utilisation, technology investment and improved efficiency throughout the operation”.
It would not confirm how many jobs would be lost.
Mr Cronin said the company plans to enter talks with unions and staff representatives promptly with a view to having the plan in place by the end of the year. Wexford Milk Producers, a co-operative owned by 350 farmers, acquired 70 per cent of the business in a €9 million deal last year.