LacPatrick Co-op has informed its staff of a series of cuts on bonuses and holiday pay, underlining the need to become more efficient ahead of and during the upcoming merger with Lakeland Dairies.
In a statement to approximately 400 staff, the firm’s management introduced a series of measures to realign costs.
While no salary cuts were imposed, LacPatrick will not pay a Christmas bonus to staff this year in a bid to keep costs down.
Staff working on bank holidays will see pay reduced from quadruple time to double time on such days.
The co-op’s sick pay scheme has also been suspended.
The statement from management to staff read: “We all appreciate the significance of these actions and the impact they will have.
However, there is a requirement for us to consider any and all measures in order to try and ensure the continued operations and job security within the business.
“While it is hoped these changes will be limited in duration, it is likely they will be required until completion of the merger.”
Speaking to AgriLand, a spokesperson for LacPatrick said: “The board and management of LacPatrick are committed to running the LacPatrick business in a profitable and sustainable manner.
“The co-op must return the maximum milk price to our farmer suppliers and this can only be done by being as efficient as possible.
The measures outlined are being taken in the midst of a severe downturn in the dairy markets which is on a par to two years ago.
“In October 2016, most ROI co-ops were paying a base price of 27c/L and NI buyers were returning an average base price of 22p/L to farmers. The business we operate must reflect the realities of the market.”