WORKERS FEAR FOR FUTURE OF NESTLE
Workers fear for the future of Nestle
BY ROSETTA DONNELLY
AS EMPLOYEE numbers at the Nestle plant in Omagh fall to the lowest in its sixty year history, fears heighten that the milk processing plant is going to close its doors for good.
An employee of 25 years who took Redundancy two months ago spoke to the Herald this week about his concern that the company would close the Omagh plant shortly.
He went on to say that he believed that Nestle planned to wind up its operation here a few years ago, but because of the Omagh bomb, it postponed the move. "Everyone at the factory believed that Omagh would have closed had it not been for the bomb" he said.
The Nestle factory opened in 1942 and since then has been a good employer to the people of Omagh, employing at its height 600 people. At present it processes locally bought milk and manufactures bulk milk powder for industrial use.
Nestle Plant manager, Dermott Mullen rejected what he described as 'idle speculation' about Nestle. He said the redundancies which have taken place over the last year, were announced two years ago.
He went on to state that the plant is producing higher volumes than last year. "What has changed is that we are now into bulk production".
Mr Mullen further rejected the comments about the Omagh bomb and said it was 'a low blow' at the management of the company. "I
know so many of the senior management in England and this is totally untrue" he added.
There are only approximately sixty employees left remaining in Omagh. The administrative office has been reduced from 16 to 3.
Another employee who was with Nestle for 20 years took redundancy six months ago and he too believes that the company will wind up within eighteen months.
He praised Nestle for what he described as a 'superb employer' who had given lots of employment not just to its staff, but to the surrounding farming community. But he feels it's the contracts which Nestle has with the farmers which is holding it in Omagh.
He further claimed that Nestle has been paying off staff in a 'drip feed' manner. "The company keeps on downsizing but in such a way that no-one in the wider community sees what is happening"
"I firmly believe the company will not be in Omagh by the 2003 which will big loss to the town" he said.
A spokemsan for Nestle UK who also refused to 'comment on speculation' said that the company was experiencing difficulties as a result of foot and mouth, but said he was 'confident that things would turn round again".
"Nestle has been experiencing difficulty because of the effect of Foot and Mouth on their export markets.
"The Omagh plant produces 18,000 tonnes of spray dried milk powder of which 15,000 is exported to the EU. Milk powder is packaged in large bulk for export to Nestle companies in other markets who then re-pack locally into their required sales format.
"However, sales outlets are severely constrained and the company is currently having to sell product in bulk to third party traders, incurring significant losses.
"The milk supply from the contracted farmers in the factory in Omagh is above normal as milk production in the rest of the country. As a result of FMD, there are also fewer opportunities for the farmers to sell their milk or milk products.
Nestle has taken on an extra sales contract and is processing the milk at cost solely to assist in stabilising the market in Northern Ireland" he said.
BY ROSETTA DONNELLY
AS EMPLOYEE numbers at the Nestle plant in Omagh fall to the lowest in its sixty year history, fears heighten that the milk processing plant is going to close its doors for good.
An employee of 25 years who took Redundancy two months ago spoke to the Herald this week about his concern that the company would close the Omagh plant shortly.
He went on to say that he believed that Nestle planned to wind up its operation here a few years ago, but because of the Omagh bomb, it postponed the move. "Everyone at the factory believed that Omagh would have closed had it not been for the bomb" he said.
The Nestle factory opened in 1942 and since then has been a good employer to the people of Omagh, employing at its height 600 people. At present it processes locally bought milk and manufactures bulk milk powder for industrial use.
Nestle Plant manager, Dermott Mullen rejected what he described as 'idle speculation' about Nestle. He said the redundancies which have taken place over the last year, were announced two years ago.
He went on to state that the plant is producing higher volumes than last year. "What has changed is that we are now into bulk production".
Mr Mullen further rejected the comments about the Omagh bomb and said it was 'a low blow' at the management of the company. "I
know so many of the senior management in England and this is totally untrue" he added.
There are only approximately sixty employees left remaining in Omagh. The administrative office has been reduced from 16 to 3.
Another employee who was with Nestle for 20 years took redundancy six months ago and he too believes that the company will wind up within eighteen months.
He praised Nestle for what he described as a 'superb employer' who had given lots of employment not just to its staff, but to the surrounding farming community. But he feels it's the contracts which Nestle has with the farmers which is holding it in Omagh.
He further claimed that Nestle has been paying off staff in a 'drip feed' manner. "The company keeps on downsizing but in such a way that no-one in the wider community sees what is happening"
"I firmly believe the company will not be in Omagh by the 2003 which will big loss to the town" he said.
A spokemsan for Nestle UK who also refused to 'comment on speculation' said that the company was experiencing difficulties as a result of foot and mouth, but said he was 'confident that things would turn round again".
"Nestle has been experiencing difficulty because of the effect of Foot and Mouth on their export markets.
"The Omagh plant produces 18,000 tonnes of spray dried milk powder of which 15,000 is exported to the EU. Milk powder is packaged in large bulk for export to Nestle companies in other markets who then re-pack locally into their required sales format.
"However, sales outlets are severely constrained and the company is currently having to sell product in bulk to third party traders, incurring significant losses.
"The milk supply from the contracted farmers in the factory in Omagh is above normal as milk production in the rest of the country. As a result of FMD, there are also fewer opportunities for the farmers to sell their milk or milk products.
Nestle has taken on an extra sales contract and is processing the milk at cost solely to assist in stabilising the market in Northern Ireland" he said.
Further Information
Publisher: ULSTER HERALD
Ref: UH/0761
Published Date: 03-May-01
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