About 40 jobs are likely to be lost after a controversial “restructuring exercise” at one of Horsham district’s biggest employers.
Monaghan Mushrooms said it was optimistic of retaining 90 per cent of the 400 jobs at its site in Thakeham, but a spokesman for the GMB union described the threat to any jobs there as “despicable”.
The company said in a statement to The Resident yesterday (Thursday): “The takeover of Thakeham Mushrooms Ltd by the Monaghan Mushrooms group was approved by the Office of Fair Trading in December 2011. The company (previously known as Sussex Mushrooms Ltd) was rescued by the Monaghan Mushrooms group from administration in July 2011. It had been suffering from a lack of investment over many years and incurring significant operating losses.
“In June/July 2011, the employees had not been paid wages for eight weeks and the future of all 400 jobs was in doubt. The Monaghan Mushrooms group ensured that the arrears of wages were paid and are committed to protecting as many jobs as possible on the site. We are engaged in a restructuring exercise with the objective of reducing the operating losses and securing the majority of the 400 jobs at the Thakeham site. At-risk letters were issued as the first part of the legal consultation process and our obligations to inform and communicate with employees.
“The first phase of these consultations involves discussions on voluntary redundancy. We are optimistic that the majority of the reduction in numbers will be achieved by agreement and that we can protect 90 per cent of jobs on site. We are involved in extensive discussions and consultation with our employees through our works councils.
“The Monaghan Mushrooms group is committed to the long-term future of Thakeham Mushrooms Ltd, which will include a significant investment programme over the next five years to develop the finest mushroom facility in Europe. We will continue to communicate with our employees to keep them informed of the restructuring plans and encourage them to work with us to build a successful future.”
Charles Harrity, regional organiser for the GMB, said: “The decision to issue at-risk notice of redundancy looks like the worst kind of short-term business planning. This is especially true when one considers that at the time of the very recent takeover there was a business plan in place which included a redevelopment of part of the site. The decision to put all these jobs at Thakeham Mushrooms at risk is a despicable act. Has this site been acquired for its development potential rather than to sustain jobs? I sincerely hope these jobs can be secured.”
Ronnie Wilson, chairman and chief executive of Monaghan Mushrooms, told The Resident after the takeover last year: “This is the start of a new chapter in the long history of mushroom-growing at Thakeham.
“Thakeham is attractive to us because of its strategic location in the South East. Monaghan has a strong track record of successfully growing businesses and is committed to the long-term future of Sussex Mushrooms at Thakeham, delivering future growth, expansion and new jobs.
“The mushroom industry in the UK is extremely competitive. The Thakeham site has not had any significant investment for more than a quarter of a century and now requires major investment to bring it up to 21st-Century standards to ensure its long-term survival. The capital injection from the new homes development is essential to kick-start further investment and to deliver the vision set out by Sussex Mushrooms to create a state-of-the-art mushroom-growing facility.
“We anticipate some job losses in the near term, but we will increase employment at the site as production increases.”
