AGREEMENT ON a €10 million payment to redundant workers, Government aid and a solution to the group’s €111 million pension shortfall are key to securing the sale of Waterford Wedgwood.
Talks to sell the luxury crystal and china manufacturer out of receivership to one of two US bidders are in their final stages, with sources saying KPS has an edge over rival Clarion Capital.
Yesterday, Unite, the union which represents the bulk of the group’s Irish workers, told members at a meeting in Waterford that a deal with KPS Capital would see redundant workers sharing a once-off €10 million payment.
At the same time manufacturing at the Kilbarry plant in Waterford could be revived with the help of Government aid. The union did not specify the figure yesterday, but it is understood to be €10 million.
KPS has initially committed to keeping on staff in the Waterford plant’s visitors’ centre and administration.
According to Unite’s Irish regional secretary Jimmy Kelly, it has agreed in principle to keep manufacturing going in Waterford with the backing of the Government’s cash, and the parties were working on a timeline for this.
Unite, the Government and the Irish Congress of Trade Unions (Ictu) will attempt to deal with the €111 million shortfall in the group’s pension scheme through the creation of a pension protection fund.
“The deal which is on the table at present secures jobs, money for those without jobs and the strong prospect of a long-term manufacturing future for Waterford Crystal in Waterford,” Mr Kelly said.
“This issue of pension protection is being addressed with Government and the Ictu. The alternative bidder for the group, Clarion Capital, has thus far not put forward a financial amount to cater for workers who have lost their jobs over the years.”
KPS will keep at least 300 of the 700 staff in Waterford, it is thought.
The €10 million payout to redundant workers will be shared with the 200 or so former staff whose phased redundancy payments the receiver, David Carson of Deloitte, was forced to stop last month as he began to run out of the cash needed to keep the group trading.
Some reports yesterday suggested that the €10 million payout to redundant workers would result in average payments of €12,000 each.
KPS and Clarion are bidding for the entire group, which includes Waterford Crystal, Wedgwood and Royal Doulton china manufacturers in Britain and Rosenthal Porcelain in Germany.
Mr Carson halted manufacturing at Waterford two weeks ago with the loss of 480 jobs after €8 million he borrowed when he was appointed last month ran out. He has pledged to sell the group as a going concern.
Waterford Wedgwood’s banks placed it in receivership after it failed to make instalments on a loan repayment late last year.
