TÁNAISTE MARY Coughlan has expressed “deep disappointment” at the loss of 124 jobs at one of the best-known bakeries in Ireland Gallagher’s of Ardara.
But the former minister for enterprise, who lives 20km (12 miles) from the plant, said she was already in discussion with Enterprise Ireland and Údarás na Gaeltachta. She said the company will be meeting both the State agencies today to see if employment can be preserved in Gallagher’s.
Workers were addressed by managing director Declan Gallagher in the afternoon when he told them that deteriorating conditions in Ireland and the UK meant an end to the company’s frozen-food production line.
Workers were told that it was hoped 40 of the 189 jobs could be saved as negotiations were under way with a prospective buyer to save Gallagher’s local fresh bread business.
A further 25 jobs could also be secured through redeployment at the Grangecastle, Co Dublin, plant of the parent company.
Mr Gallagher, son of Frank who founded the company in 1968, said: “The frozen business is not sustainable in the long term. Its position has been under review for some time and we have now arrived at this decision which has been taken with great regret.
“Increasingly difficult market conditions, increased commodity costs, declining sales and reduced product prices have put immense pressure on the business. This has been exacerbated by the weakness of sterling which has affected our ability to compete in the UK market.”
He recognised that the job losses were a huge blow for staff and their families. Although local speculation had forewarned workers for several days, they were still stunned. Most expect they will have to emigrate in search of work.
Liam White (27), who has worked at the bakery for a year, said: “I took the job because I wanted to stay here but now I will have no choice but to emigrate. There is nothing else for us around here. It’s absolutely devastating news for Ardara.”
Dinny McGinley, Fine Gael TD in the constituency, said: “This is nothing short of an economic tragedy for the area, especially when the region is already an unemployment black spot.
“The loss of so many jobs at this iconic business is a huge blow. Gallagher’s bakery started out as a family business many years ago and has been an excellent employer with their produce winning worldwide acclaim.”
Gallagher’s is now part of Swiss food company Aryzta, and has links with Cuisine de France where 25 people could be redeployed. The Donegal company produces its own soda bread and other varieties, as well as the French Mill brand.
About 200 products have been distributed to supermarkets across Ireland, including Tesco and Dunnes and to Harrods of London.
A middle-ranking executive, who asked not to be named, said workers were blaming parent company Aryzta for the closure.
He added: “There aren’t many jobs to go to at Grangecastle in Dublin.
“There are very few humans there; all the work is done on machines.”
Less than a year ago Gallagher’s announced a 36-job creation programme which would have built up the workforce to 207 over three years with a €780,000 Údarás na Gaeltachta investment.