BYC.J. MCGINLEY
FEARS for the long term future of one of Letterkenny's most established firms have been expressed following confirmation yesterday (Thursday) that it is on the verge of being sold.
Workers at Oatfield Confectionery have expressed concerns about their future employment, relocation plans, redundancy payments and have warned the lucrative site at Ramelton Road could be sold to developers within a three-year period. In a statement Donegal Creameries, the owners of Oatfield, confirmed that discussions were at an advanced stage. The deal could be finalised before the end of March.
"Negotiations are at an advanced stage with a potential purchaser who wants to buy the Oatfield brand from Donegal Creameries. It is envisaged the present manufacturing operation will continue in the present location for the foreseeable future. The company has briefed the employees and will keep them informed throughout the process in keeping with information and consultation regulations.
"If negotiations are brought to a satisfactory conclusion the trading name of the company may change but the terms and conditions will be fully safeguarded under the Transfer of Undertakings Act," the statement read.
The 75 workers are worried about the move.
"The deal is for the brand and business. The new company are on site for a minimum of two and maximum of three years and we're very worried what happens after that period of time. Staff were told they would be getting a P45 from Oatfield Confectionery and would then be re-employed immediately with the new firm," one worker said.
"We're worried the terms will not be as favourable with a new firm as with Oatfield. The Creameries should have done the decent thing and paid
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redundancy and those who wanted to be remployed with the new firm could do so," the worker added.
Workers feel the long term move is to sell off the current site at Ramelton Road.
"This is a lucrative site in the heart of Letterkenny. There were moves before to try and relocate to different places such as Fruit of the Loom in Milford or Raphoe, the old DPL plant in Newtowncunningham and a place in Ballybofey. The are fears that the Creamery only bought the business for the site value," the worker said.
"If the new company does not own the site where are they going to relocate to in the years ahead? They can get up and go and take the brands wherever they want. While the company is doing everything legally right staff are really concerned on a number of fronts about the move and what the future holds for them".
Another worker said the Creameries hadn't invested in the company since they took over in 1999.
"The shares are going well but we haven't seen much in the way of investment in Oatfield. The site is one of the most valuable in Letterkenny and it could be bulldozed by developers for apartments down the line,"
"In the last round of redundancies at Oatfield I think workers got three and half weeks per year of service," the worker added.
Oatfield produces several brands of sweets including the famous Emerald.
