LAST UPDATE | 21 Jun 2023
STAFF AT AN Iceland store in Coolock in Dublin have paused their sit-in over the shop’s unexpected closure, which came a day after an interim examiner was appointed to the company.
Staff had arrived to work only to find the shop was shuttered and, after gaining access, staged a protest over the situation.
Jamie Murphy of the Independent Workers’ Union has confirmed to The Journal that staff stood down the protest after an agreement was reached with the interim examiner who was appointed by the High Court for the Ireland franchise.
This concerned the redundancy workers can receive if the stores close for good, and to back pay that they have been owed since a new owner took over the franchise in February.
Murphy said Iceland workers in other stores suspect they are due to close too, but that further protests are not planned following the agreement with the examiner.
“They’re quite scared – they’re in a very precarious situation,” he said.
He added that Iceland workers “haven’t been in secure employment in months” due to payroll issues.
In recent weeks, The Journal has reported that staff had complained of erratic wage payments, which had seen some receiving a fraction of their ordinary pay packet, or not being paid at all.
A shock recall of the entirety of the grocery retailer’s frozen products of animal origin followed last week.
The Food Safety Authority of Ireland (FSAI) issued the recall, describing the breaches of food legislation as “very serious” and seeking to recall food which had been imported into Iceland stores since 3 March.
At the protest in Coolock, protestor Bernard Mulvaney of People Before Profit claimed that a driver had come to remove goods on behalf of the company but gardaí subsequently seized the van.
Gardaí confirmed to The Journal they had seized a vehicle at the site under Section 41 of the Road Traffic Act on the grounds of suspected invalid insurance and CVRT.
Yesterday, the High Court heard that owner Metron Stores Limited, which took over the Irish franchise in February, is insolvent and unable to pay estimated debts of €36 million as they fall due.
However, an independent Experts Report (IER) has stated that the company has a reasonable prospect of survival if certain steps, including the appointment of an examiner, are taken.
The company operates 26 Iceland stores in the Republic of Ireland and employs over 344 people.
Labour TD Aodhán Ó Riordáin was at the Coolock store today, saying in a video on Twitter that staff “turned up for work this morning and were effectively told they’ve no jobs”.
Ridiculous situation in Iceland store in Coolock right now.
— Aodhán Ó Ríordáin (@AodhanORiordain) June 21, 2023
Workers treated disgracefully. pic.twitter.com/5CzCidl2wb
Mulvaney told The Journal that it was “outrageous” how workers had been treated.
“Some were emailed very late last night and some found out this morning on their way to work. It’s an outrageous stroke to pull. All they’re looking for is their rights,” Mulvaney said.
There are now dozens of empty freezers across shops in Iceland’s Irish franchise carrying a notice that “due to current paperwork issues with animal based frozen food products,” the shop cannot sell the goods.
Issues have continued for some staff who aren’t receiving their weekly pay, and for others who saw their holiday hours suddenly vanish last week.
“I’ve tried different ways of contacting head office but it’s like it’s all gone. You’re just being completely stonewalled and not hearing a word back,” one staff member of a store in Munster said.
The problems have plagued the company since a new owner of the Ireland franchise for Iceland was announced in February.
That was Project Point Technologies, whose director is Naeem Maniar, an Irish-based Indian businessman. Since last week, statements have been issued by Metron Stores when queries have been directed towards the company.
Maniar previously owned Iceland’s Ireland franchise until an examiner was appointed by the High Court in 2015.
When contacted last week, hours before the food recall, the company had maintained that “as part of best practice, operational matters at store level are subject to compliance checks under the franchise agreement” with the parent company.
It has been contacted with further queries about its future over the Irish franchise and is yet to respond.
Additional reporting by Eoghan Dalton and Hayley Halpin
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