Redundancies sought at Clara medical packaging company

Nelipak Healthcare Packaging in Clara is seeking a number of voluntary redundancies at its facility on the Kilbeggan Road just outside the town.

The plant which manufactures custom packaging for medical device and pharma industries is a significant employer in Clara.

It's understood the company is pursuing 40 layoffs. Some have been working there for over 20 years.

Martin Mannion, industrial organiser with SIPTU says a number of employees have spoken to him individually but the company has refused to engage with the union over the years despite requests for collective bargaining on behalf of employees.

Mr Mannion was critical of the short time frame afforded staff to allow them make up their mind whether to accept the redundancy package.

''Staff were called in last week and told. They were given a week to decide whether they wanted to accept. It really isn't best practice. It is unrealistic to expect people to make a decision in that timeframe, especially those working there 20 plus years.''

Mr Mannion believes the redundancy package on offer is two weeks statutory pay plus two weeks extra per year of service. He said whether employees want to accept it is between the individual and the company.

We have contacted Nelipak for comment but up to the time of writing there has been no response.

Nelipak has facilities in Galway, Derry, UK, Netherlands as well as a number of plants in the US.

In 2019 US private equity firm Kohlberg acquired the Clara plant along with two other plants including one in Derry and in Lincolnshire UK. The deal was valued at €347million.

This is the second medical related company to be hit with redundancies in Offaly recently. In August last year Cardinal Health in Tullamore announced it is to close its facility after the company decided to move its production to Mexico and Costa Rica.

Cardinal Health told its Tullamore workforce of over 300 that it will begin winding down the plant in the spring of this year with a full closure completed by May 2026.

We have contacted Nelipak for comment.