Brexit and Covid blamed as 200 motor factory jobs at risk
MORE than 200 jobs are at risk at a Welsh car parts firm which is blaming the combined economic impact of coronavirus and Brexit.
Kautex Textron is considering the closure of the plant on the Dyfrryn Business Park, Ystrad Mynach, and is in talks with unions and employees.
BBC Wales reported that a consultation period between staff and management has begun, with talks set to last until at least mid-May.
The unions say that it is “devastating” and that they have been told the Brexit has played a part in the decision.
The factory opened more than 50 years ago and makes hoses, water containers and nozzles.
A company statement says: “We can confirm we have entered into provisionary discussions regarding staff reductions and potentially a site closure.
“Brexit, as well as the ongoing economic impact of Covid-19, are the key contributors to this decision.”
The GMB Union said it was notified by the manufacturing company before Easter that it was considering cutting the workforce and the Welsh government said it was “working with the company” to help save jobs.
Mike Payne, the union’s senior Wales and South West organiser, said it is “devastating” for their members at the plant.
He told BBC Radio Wales: “We have been working with them for 51 years, they are a really good company to work with, they are really good jobs, highly paid and well skilled.
“This is an absolutely devastating and out of the blue decision that no-one was expecting.”
He said they have had discussions with Kautex Textron management and said a “whole site closure” was being considered because of a “downturn in sales in the global market”.
“It is a profitable site, but Brexit is playing a big part in this,” he added.
“Clients are starting to argue production should be closer to their bases in continental Europe”.
The GMB said the company was looking at how it could expand into other products, with the potential to then cut just 44 people from the workforce.
The Welsh government said it was “working with the company to explore potential solutions to help sustain the plant”.
“This is clearly a concerning time and we are monitoring the situation closely,” a spokesman added.