By Christy Parker for the Dungarvan Observer.
About a hundred workers have secured re-employment at the newly formed Cappoquin Poultry Ltd after Cappoquin’s chicken processing plant was rescued from oblivion last weekend. Approximately 50 workers either did not apply for work or failed to acquire it. Full recruitment is expected to reach approximately 140 full-time and up to 25 seasonal, according to management.

Workers secured an improved deal of €9 per hour, with time and quarter overtime, having rejected totally an original offer of the minimum wage rate of €8.65 per hour (a drop of 171/2 %), without overtime, which was offered as the clock ticked towards closure last Friday evening. Cousins Zahid Hussain and Parwiaz Latif, who own the successful Derby Poultry Ltd, in Britain, purchased the troubled plant. The two men hold a 65% share, with former owners Paul and Michael O’Connor and former Cappoquin Chickens Ltd. accountant Tom Vaughan, holding 35% between them.

Last Friday, as the deal to save the plant was being thrashed out, workers found themselves facing a minimum wage ultimatum or unemployment. There was palpable anger, with employees, some of whom had given decades of faithful service to the plant, extremely disillusioned at what seemed exploitation of their vulnerable position. If nothing else, as an exercise in management-staff relations, it was a pretty shaky start for the new owners.

Many workers, who had been present throughout the day, had departed before the remaining 30 or so, through SIPTU’s Waterford branch representative David Lane and shop steward Mary Lenihan, agreed in principal to remain in employment o their behalf, subject to further discussions on pay and conditions on Monday morning.

The new pay rate was subsequently agreed after the weekend. While hardly copious, the rate, allied with a promised review in six month’s time, holds just enough attraction to withstand other options. “There is not a lot of work around here. What is the option? Go on the dole for €197 a week? We haven’t basically got a choice,” says Ms. Lenihan.

Mr. Hussain explained that the chicken feed being offered to employees last Friday was justified by the significant losses incurred at the 50 year-old plant, which went into liquidation with estimated debts of over €8m. He said the minimum wage was “set by the government” and presumably reflected reality but if its implication “enabled the plant to operate at full capacity, there would be a lot of positives out of it.” He said initiatives such as bonus schemes would help offset lower wages in due course before adding to sceptical listeners that, “we are working class people and will work with the workers under the same conditions and circumstances.”

Mr. Hussain refused to reveal how much was paid for the plant. He said negotiations with suppliers would commence shortly and that bad debts were “being dealt with by the liquidator.”

In the minutes following the sale, names and instigators began to emerge in more detail. Waterford Labour TD Brian Hayes was at the factory to assist with negotiations and said he had been contacted after initial talks had collapsed. “Essentially its a job for the professionals from here on,” he said in deference to the post-weekend negotiations.

Accountant-turned-investor Tom Vaughan thanked Mr. Hayes and also reflected that Agriculture Minister Mary Coughlan had been supportive in the takeover process. He added that, Enterprise Ireland’s Joe Fox would be bringing “some capital grants and other assistances” estimated at around €500,000. Mr Vaughan also asked consumers to be aware of product sources and said effective labelling “would help a lot.”

SIPTU’s Davy Lane paid tribute to the workers, who had been “in despair for several months but continued on as normal and by doing so showed the investors the potential of the place. They should be congratulated for it,” he concluded.

Hatching a new future

The longer-term future will see a new structure implemented to meet a new market. According to Mr. Hussain, Cappoquin Poultry extend its production supply the halal market in the UK, amongst other outlets. Nobody was asking and few probably cared, as to what halal poultry or practice means. Halal meat meets standard particularly in keeping with Islamic law and enjoys a huge global demand.

Amongst other alterations, chickens can expect to die differently under the halal knife. A fast internet search suggests that they will be required to be “healthy at the time of slaughter,” which may follow Electric-water bath stunning since carrion is forbidden. (See www.halalfoodauthority.co.uk/define.html). Further criteria include: A Muslim should perform slaughter; any flowing blood of the carcass should be completely drained; choice of modern and in vogue method has to be considered with caution and, it should be mirroring to the Islamic ethos. The meat allegedly tastes much better for this process.

A new hatchery is to be purchased to provide victims for the new procedures the previous one having been sold. Union recognition remains as it was. Negotiations with suppliers are currently ongoing.