Food firms' worker get pledge of no redundancies

TRADE unions representing workers in Avonmore Foods and Waterford Foods have been promised that there will be no compulsory redundancies if the merger of the two food companies is approved next month.

SIPTU regional secretary John Dwan and ATGWU district officer Mr Tony Mansfield met Avonmore chief executive Mr Pat O'Neill and Waterford chief executive Mr Matt Walsh and were told that the companies will operate a policy of no compulsory redundancies in the event of job reductions "and will bring about change through the use of the normal negotiating machinery."

The union officials said that they were told by the two chief executives that no decisions had been taken or consideration given to any specific changes which might result in the loss of jobs.

Meanwhile, the Kilmeaden Advisory Committee of Waterford Co op - the most vocal group opposing the merger - has intensified its campaign against the Avonmore proposal and has claimed that the spinout of shares in the merged coop would be simply one step on the way to farmers giving up control of the coop to financial institutions.

The Kilmeaden committee has repeated that there is no need for a spin out of shares if the coops are merged. Avonmore has proposed that as part of the merger, shares would be spun out to coop shareholders with the result that the Avonmore Waterford Coop in Avonmore Waterford plc would fall from 65 per cent to 55 per cent.

"Technically speaking, it would appear that at 55 per cent we would still have control over own affairs. But we believe that the reduction of the shareholding is, in fact, one foot on the slippery slope to reducing farmer control to the point where outside interests, amongst them financial institutions, will have the majority say in our affairs." The committee expressed concern that the reduction in the coop shareholding to below 50 per cent is the long term objective.

The Kilmeaden committee is also critical of NCB's role as adviser to both Waterford Co op and Waterford Foods. We believe that this creates a conflict of interest as the ethos of the plc is radically different to that of the cooperative. We believe that Waterford Foods and Waterford Coop should protect their respective interests by having separate and appropriate advisers.

The committee also warned that one downstream effect of the merger would be the loss of farmer control over the price paid for milk "and we do not believe that this is in the long term interests of either Avonmore or Waterford farmers.

It added that the Waterford farmers with the greatest resources would benefit most from the merger and pointed that the average Waterford shareholders will get about £6,240. Over 80 per cent, however, will get an average of only £2,084 while the 13 members of the Waterford Foods board will get an average of £79,000 each. The 11 largest Waterford shareholders will get an average of £27,000 each while the 49 largest will get an average of £129,000 each, said the Kilmeaden committee.

On Avonmore's proposal to pay 3p over the market price for milk for three years, the Kilmeaden committee says that this "offers no more than the appearance of a short term gain."

With little more than two weeks to go before the first special meeting of Waterford Coop shareholders is held on July 11th, the campaign by the pro and anti merger sides is likely to intensify. A 75 per cent majority of those attending and voting at the special meeting is required at this and a subsequent confirmatory meeting. Voting at these meetings will be on the basis of one member one vote irrespective of the size of a coop member's shareholding.