TD's concern about temporary closure of Midlands factory due to Brexit issues

A Midlands TD has expressed his disappointment that Wilker Auto Conversions, based in Clara, has informed its workforce of temporary layoffs for a three-week period due to problems around supply caused by Brexit.

It comes after the company confirmed late last week 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.

“The company's decision was shocking for staff, their families and their communities and our immediate concern is for them," Offaly TD Barry Cowen said today.

"I raised this issue in the Dáil last week to seek assurance that all necessary supports will be made available to those who have been affected," he added.

In a statement last Thursday, Chief Executive Officer of Wilker Auto Conversions Donnacha Hurley said that the company commenced its Brexit preparations in mid-2019 and engaged with an outside expert 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," he said.

However, the Clara-based Fianna Fáil TD is greatly concern by what's happened at what's thought to be one of the area's biggest employers.

“The issue at hand is of great concern. It is one of the first cases of temporary job losses, with the potential for further losses, arising from the implications of Brexit.

"It is not as if this company was ill-prepared. It had employed outside expertise to assist in ensuring it was in a position to meet demands placed on it as a result of Brexit. It would appear that it’s not necessarily the same for UK companies that trade with Irish firms. This is a very worrying trend that needs to be addressed.

“We all feared the implications of Brexit. It was never going to be easy and the ramifications were always going to be there. This is one such ramification and it is of grave concern to me and my constituents,” concluded Deputy Cowen.

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.”

The union is hoping to meet management in the near future to discuss the situation.