OVER 150 jobs are expected to be saved at Cappoquin Chickens in Co Waterford after the liquidator last night confirmed sale of the processing plant to a British-led consortium. It intends to produce halal chicken for members of the Muslim faith.
Liquidator Aidan O'Connell of Deloitte confirmed that two private investors, Perwiaz Latif and Zahid Hussain, who own Derby Poultry in the UK, had taken majority stakes in a newly-formed company, Cappoquin Poultry Ltd, set up to take over the plant.
Cappoquin Chickens was founded in the 1930s, and two members of the founding family, Paul O'Connor and Michael O'Connor jnr, have also taken minority stakes along with former financial officer Tom Vaughan, Mr O'Connell confirmed.
Mr O'Connell said Mr Latif and Mr Hussain have considerable experience in the production of halal chicken, and it is understood that the new company will focus on this sector for export to the UK while continuing with chicken processing for the Irish market.
However, news of the deal to save the plant, which currently employs 200 people, was greeted with mixed feelings by workers after it emerged that the new company is proposing to pay processing staff the minimum wage of €8.65 per hour without any bonus payments.
According to Davy Lane, secretary of the SIPTU branch in Waterford, many of the staff had left the plant last night before news of the rescue deal had been finalised. However, the initial reaction of many people was one of disappointment at the proposed changes in wages.
"The reaction today was mixed. People were relieved to hear the plant is being saved, but when they heard the new owners expect them to work for the minimum wage that didn't go down very well with people. It would mean a drop in wages of €80 a week for most people.
"We're having a meeting with all the workforce on Monday morning at eight o'clock, and we won't know the true depth of feeling until then.
"But from what we hearing so far, I don't know if many people will take up that offer of employment on those conditions," said Mr Lane.
The chairman of the Irish Poultry Growers Committee of the IFA and a supplier to the plant, Ned Morrissey, said he was "very relieved that the company is going to continue trade going forward, and I would be hoping they would treat the farmers fairly in the future".
John O'Connor, whose grandfather set up Cappoquin Chickens, told The Irish Times the O'Connor family was pleased that the plant had been saved as it had been the family's hope all along to "maintain longevity in the company".
Mr O'Connor said he believed the environment for poultry processing in Ireland had improved in recent weeks with the price of chicken feed dropping by almost €60 a tonne.
However, he said because there was only four weeks' supply of chickens still going through the system he expected the plant to close for two to three weeks in November before starting up again when a new supply arrived.
