HUGE ANGER AND UPSET AT DEVASTATING JOBS SETBACK
There is huge upset in Arklow after it was confirmed that pet food manufacturer Rondo Food will close its Arklow facility next month.
Senior management from parent company, Rondo Food, broke the news to workers at a meeting on Monday afternoon that operations at the plant would be re-locating to its facility in Krefeld, Germany.
In a statement, the company, which manufactures snacks for cats and dogs under private labels, said: ‘In an intensive consultation process, all possibilities for the Arklow site were taken into consideration. After evaluating all options, Rondo Food has reached the conclusion that by the end of January 2020 the facility will be relocated to Krefeld in Germany.’
Production at the plant will finish for Christmas on Friday, December 20. Several sources have said that most workers will not return in the new year when the process of decommissiong the factory is expected to begin. It’s been suggested that a skeleton crew of up to 30 workers may be kept on to decommission the plant in January, according to a source.
In its statement, Rondo Food confirmed that around 150 people work in the Arklow plant. However, the number of workers employed at the facility can go up and down, depending on requirements. Around 20 seasonal workers finished contracts in mid-November and other sources suggest that there are between 111 and 133 people still working in the plant.
‘All staff have been offered redundancy packages which exceed the scale of the mandatory statutory redundancy packages,’ the company said.
According to several sources, redundancy packages of two and half weeks per year of service have been offered to employees at the facility. Redundancy packages have also been offered to staff members who would not be entitled to statutory redundancy as they have less than the required two years continuous service.
An information day for staff involving a number of State agencies will take place in the Arklow Bay Hotel next week.
‘Arklow has a great workforce. People [at the factory] kept working even under this cloud,’ a source told this paper.
While the Arklow plant had high rates of production, a source said that poor sales, the volatility of sterling and increased competition in the pet food market affected the facility’s viability.
‘We deeply regret this development. For eight years. our Irish staff have shown immense commitment in contributing to the development of the site. We are very grateful for both their dedication and for our long-standing cooperation with Enterprise Ireland.The unsatisfactory economic development and the market situation necessitate the bundling of operations at our largest location in Germany,’ Rondo Food management said in their statement.
Councillor Pat Fitzgerald, Cathaoirleach of Arklow Municipal District, said it was ‘ hugely disappointing to have learnt of the closure of Rondo Food.’
He added that the announcement was ‘a huge setback to the workforce and their families.’
‘ The loss of 150 jobs is a huge setback for the area and it is incumbent on our Dail representatives to ensure that attention is urgently given to the Arklow area by the IDA and Enterprise Ireland so as to offset the job losses.’
Several local public representatives have called on the Government to put in place an employment taskforce in Arklow.
Councillor Peir Leonard said she was ‘extremely disappointed at the decision’ and had ‘attempted to engage with the parent company to extend the consultation period and possibly defer the relocation so as to enable further solutions to be discussed or at the very least to let the workers find alternative employment but unfortunately to date I have not received any reply.’
Cllr Leonard asked Wicklow TDs and local councillors to continue to be proactive ‘in ensuring that Arklow is recognised as an unemployment black spot and that a dedicated employment task force is put in place immediately to counteract these job losses.’
‘I wish to commend the works committee for their positive engagement with the parent company to prevent the relocation and reassure them that I will be proactively working on their behalf going forward,’ Cllr Leonard added.
Gaines Europe was acquired by German pet food manufacturer Rondo Food in November 2011. Gaines had been an employer in Arklow since 1995. The German company invested in a new producation facility on the South Quay which opened in 2013. The investment was seen as a major boost for Arklow and the wider South Wicklow area at the time.
Fears for the future of the Arklow facility grew after a 30-day consultation process between management and the workers’ committee got underway in early November to try to find ways to keep the Arklow plant open.
Sinn Fein Deputy John Brady, who had been involved with efforts to save the plant and had met with Rondo Food management yesterday (Tuesday), said: ‘I think they entered this process knowing what the decision would be.’
Deputy Brady said that workers had given years of commitment to Rondo Food but he didn’t feel that the company showed the same commitment to them.
‘ The Government now need to step up to the mark. Rondo Food has received sizeable amounts of taxpayers’ money over many years – €400,000 in funding from Enterprise Ireland since 2011, as has been confirmed to me. We now need to see the same level of investment by Government in Arklow as Rondo Food closes its doors at the end of January.
‘In fact, some of that Enterprise Ireland funding should be recouped, particularly if it does not meet the terms in which it was granted to Rondo Food.
‘All of our energy now must go into ensuring that an employment taskforce is established by Government and that all available resources, including the IDA and Enterprise Ireland are put into ensuring that alternative employment is developed in the Arklow area. I will work with all stakeholders to make this happen.’ Deputy Brady said.
Fianna Fail TD Deputy Pat Casey, who was also involved in efforts to save the plant, also expressed his disappointment at the decision. He raised concerns that the German company had ‘decided not to engage constructively with the attempts by the workers and Enterprise Ireland to prevent this closure. It is essential that Rondo put in place an enhanced redundancy package and employment supports for the 150 workers in the Arklow factory. This company has benefitted from the hardwork of the Arklow workforce and must ensure that it makes every effort to ensure that every workers receives the support they deserve.
Deputy Casey also called on the Government to find an alternative employer for the site, saying ‘ the highly skilled and motivated workforce provide an excellent opportunity to any manufacturing industry. Enterprise Ireland have a major role to play here also and must ensure that alternative employers are sourced for Arklow,’ Deputy Casey said.
‘While this is a dark day for Arklow employment, I am convinced that employment and investment opportunities are in the pipeline. Arklow’s new waste water treatment plant, its location on the N11/ M11 and the arrival of a major data centre development all point to a brighter future and I and the Fianna Fáil team in Arklow will ensure that this happens,’ Deputy Casey added.
A spokesperson for Enterprise Ireland told this newspaper that ‘it is regrettable that Rondo Food Ireland is to relocate its facility in Arklow to Krefeld in Germany and that all staff will now be offered redundancy packages. Enterprise Ireland will liaise with the local relevant agencies and government departments on the provision of support to those affected by the facility closure.’