€500 payment recommended for Dawn workers

Food giant has been in dispute with Siptu over redundancy terms

The Labour Court has recommended that 104 workers, set to lose their jobs at a Co Tipperary food processing plant, be paid aggregate lump sum totalling €52,000 as part of enhanced redundancy deal.

The job losses are due to occur on October 25th at Dawn Fresh Foods Ltd's plant at Fethard, Co Tipperary.

The Waterford-based Arrow Group opted to shut down the plant, which produces chilled and frozen ready-made meals both for the Irish and UK markets, due to a declining market, unfavourable currency exchange rates and increasing costs of raw materials, energy and transport.

The food giant made the announcement in August and has been in dispute with Siptu over redundancy terms for the workers with the row going before a hearing of the Labour Court.

As part of an enhanced redundancy deal for the 104 workers, the Labour Court is also recommending that the workers be paid an additional one week’s service for each year on top of statutory redundancy. The €52,000 in ex-gratia payments is made up of €500 to each worker.

Gordon Deegan

Gordon Deegan

Gordon Deegan is a contributor to The Irish Times