Chicken Processing resumes at Cappoquin

Work has resumed again at the premises of Cappoquin Chickens - recently renamed Cappoquin Poultry - in Cappoquin, Co. Waterford, after many of the employees began accepting new work and pay conditions.

The new (English) management team suggested that employees would have to take a 17% cut in hourly pay, with most of them having to work for the minimum wage of € 8.65. Under the plan 25 people would lose their jobs.
A majority of employees present rejected this and a new offer was put to them which would entail a further ten job losses, but those remaining would be offered € 9 per hour and time and a quarter for overtime.

Most of the 200 employees said they were unhappy with pay terms and conditions first proposed.
They were told that they can either apply for a job with the new company or take redundancy terms set out by the liquidator of Cappoquin Chickens.

Eventually, many of the workers did accept the second offer of the new management, even though they will still earn less than they did before in the old company.
With few jobs available in the rural western part of Co. Waterford and unemployment rising fast all over Ireland, they do not have much of a choice. Especially as most of the people in question have worked in the poultry business for a long time and would not find it easy to change over into other industries.

Under the new regime there are expected to be at least 40 fewer staff required from the 200 which were employed last month. Negotiations are continuing with office and delivery staff.

Cappoquin Chickens, which had been in liquidation for a month, was bought by a consortium led by the British-based company Derby Poultry Processors. (see my entries of September 17th and October 3rd)

It remains to be seen if the business will flourish again under its new ownership, and if market shares lost in the past can be regained.
For the moment it is good news that the business is kept in operation, in particular as Co. Waterford has one of the highest unemployment figures in the country and every person in work is a step forward, out of the current recession.

The Emerald Islander

Cappoquin Chickens bought by UK Company

Cappoquin Chickens, the well-known Irish poultry processor from Cappoquin in the western part of Co. Waterford, has been sold to the little known British company Derby Poultry Processors.

More than two weeks ago the management of the family-owned local business, which was of great importance for the area, had announced the end of operations and closure of the company, which had run into financial difficulties and accumulated debts of about € 7 million. More than 200 local jobs were lost due to the liquidation.
(for more details see my entry of September 17th)

Throughout the whole summer Cappoquin Chickens had tried to rescue the business, but failed in the end. There were also negotiations with potential buyers in the UK, but they came to no conclusion. So eventually the O'Connor family, who founded Cappoquin Chickens and ran it for nearly 50 years, had no choice but to give up.

Now it emerged that one of the English companies they were in contact with is picking up the remaining pieces of Cappoquin Chickens as a bargain. So the economic neo-colonialism we have seen many times before is raising its head once again.

In a statement Cappoquin Chickens said: "This sale will safeguard the future of the facility. The new structure will require a period of re-organisation, which will result in continued employment for the majority of the existing employees. Cappoquin Poultry Limited will now engage in a period of gradual growth to re-establish market share."

The company also said it intends to source a new hatchery, following the sale of its hatchery in recent weeks.

For the local workers this is good and bad news at the same time. Most of them will get their jobs back (which is the good news), but only under new terms and conditions, which are not as good as what they had been before.

Two of the previous owners, Paul O'Connor and Michael O'Connor Jnr., along with their former financial officer Tom Vaughan, have taken minority stakes in the new company.

The Emerald Islander