Management at Galtee Meats at Mitchelstown in north Cork has warned that the future of the plant is under threat after the workforce rejected a cost-cutting programme.
The plant employs 160 people and is owned by Dairygold which has shed more than 1,000 jobs over the past 18 months.
The plant at Mitchelstown is the latest target for rationalisation within Dairygold, with management attempting to implement new work practices and reduce payroll and bonus costs.
The company says its proposals would bring costs at the plant into line with its competitors in Ireland. However, SIPTU, which represents the workforce, claims pay rates would be reduced to around €9 per hour and over-time would be virtually eliminated.
The rationalisation plan was overwhelmingly rejected when it was put to a ballot of the workers and both sides would now appear to be on a collision course, with the future of the plant at stake.
Management sources are stating bluntly that there can be no future for the plant unless costs are reduced in line with the rationalisation plan.
SIPTU says it will ballot its members on industrial action if the company attempts to implement the plan without the agreement of the workers.
