CROSSGAR Foodservice says it plans to remain a major employer in Down District despite announcing almost 60 redundancies this week.
The restructuring move announced by the business will result in around 40 voluntary redundancies and 19 compulsory redundancies.
Although final numbers have yet to be confirmed, the firm says over 100 people will continue to be employed in Down District by the firm.
The jobs of another 46 employees working in the Crossgar Poultry division of the business have been saved after it was sold to Lissara Farms Ltd. Lissara Farms is owned by Paul Bell, whose family are the former owners of Crossgar Foodservice.
The redundancy news has come, however, as a shock to employees, and politicians including South Down MP Margaret Ritchie have called on the Department of Enterprise, Trade and Investment to urgently assess employment opportunities in the Downpatrick area, which has no large manufacturing base and a reducing public sector.
One Crossgar Foodservice employee, who asked not to be named, said he was “dumbstruck” after staff received the news of redundancies on Friday.
“It was unexpected,” he said. “The company has been running successfully.”
The employee added that it would be difficult timing for many in the run up to Christmas.
The consolidation of part of Crossgar Foodservice with its Limerick based parent company Pallas Foods means a name change for local company, which will now be known as Crossgar Pallas.
As one of Ireland’s leading food suppliers with 238 employees, Crossgar Foodservice was acquired by Pallas Foods on behalf of its US owners Sysco in June 2012.
The move away from manufacturing seeks to bring Crossgar Foodservice in closer alignment with Pallas, which does not manufacture and instead specialises in food distribution.
In a statement, Crossgar Foodservice said the move was “aimed at streamlining the supply-chain and meeting the needs of its growing customer base in Northern Ireland”.
“Crossgar Foodservice customer facing role in sales, telesales and drivers will not be negatively impacted by the measures outlined,” the statement read. “Today’s developments will also have no impact on day-to-day customer and supplier interactions with Crossgar Foodservice.
“While some redundancies are regrettably unavoidable, measures announced align the Northern Ireland business of Crossgar Foodservice with its parent company’s core area of expertise, foodservice distribution. The development enhances distribution and product choice and provides improved value and a stronger, more compelling offering to customers.
The company has also pointed out that the reorganisation of Crossgar Foodservice will create seven full-time jobs in the short-term.
Crossgar Foodservice is currently spread over three sites at Kilmore Road, Crossgar, Down Business Centre in Downpatrick and Farranfad Road, Seaforde.
The Kilmore Road site is expected to remain as the poultry site for new owners Lissara Farm Ltd., with Crossgar Pallas operating as their distributor.
At Down Business Park the meat processing centre is set to go but a new administrative centre for the business will be housed there.
Although redundancies are being sought in the warehousing division it is thought warehouses at the Farranfad Road site will remain in use.