Brexit forces temporary closure of Clara factory

Management at Wilker Auto Conversion Ltd in Clara has confirmed to its workforce that a three-week temporary shutdown of production will begin on February 12 as a result of Brexit-related issues with its supply chain.

The decision by the company, which specialises in ambulance and vehicle conversions for clients including the HSE, is set to impact 80 employees.

Shortages in key component parts for the company’s current and upcoming orders has resulted in the closure.

In a statement, Chief Executive Officer of Wilker Auto Conversions Donnacha Hurley said that the company commenced its Brexit preparations in mid-2019 and engaged with outside expert support on the matter and that the company is confident that the closure is “the worst case scenario.”

“We have had to work with new controls from 1 January, 2021 and have been working very hard with our supply chain partners to meet these new requirements to keep goods flowing into Ireland, as well as out to the UK which is a major market for us,” he said.

“Despite the best efforts of all involved, we are faced with critical shortages which have resulted in this three-week shutdown.

“This situation is devastating news for all our employees which is something we very much regret. We are working with our employees to ease the financial burden that has been brought about by this interruption and of course, are continuing to work with our supply chain to eliminate or shorten the impact.

“The company focus is on these matters and we will be making no further comment on the situation,” he finished.

Production is set to resume on Monday, March 8, although SIPTU members are calling on the company to ensure “members do not suffer any unnecessary financial loss because of this shut-down and that every effort is made to eliminate supply chain difficulties in the future.”

SIPTU Organiser, Derek Casserly said: “We are seeking an urgent meeting with management to discuss in detail the reason for this decision which has caused shock and concern among workers and the wider community in county Offaly. Wilker Auto Conversions is one of the largest employers in Clara.

“Our members had previously been advised that the company was ‘Brexit-ready’ and that it did not anticipate any difficulties in its supply chain.”

Offaly Fianna Fáil TD Barry Cowen has said that he hopes the company is correct in saying that the closure is a temporary arrangement.

“Your immediate thoughts go to the workforce and their families in the community and the implications that a closure will have on them.

“I would hope that the management would engage with the unions and fully inform them of the issues at hand in order to ensure that the welfare and rights of the workforce are upheld.”

He also said that the company is not the first to face issues of this kind since January 1.

“This is not the first time that we have heard about this in recent days and weeks, and closures such as this one in relation to Brexit are undoubtedly a worry.

“We are seeing these little bombs go off around the country in relation to Brexit, irrespective of how well-prepared some of these companies were.

“It’s important to find the exact difficulties around customs and new procedures following Brexit. I would be anxious to engage with government departments to ascertain and ensure that the correct capacity and training is adhered to and to smooth this path in the future,” he finished.