The Impact of Fastway Couriers’ Receivership on the Transport Sector
The recent receivership of Fastway Couriers has raised serious concerns about the stability of the transport sector in Ireland. Industry leaders warn that the potential loss of hundreds of jobs is just the beginning of a larger crisis affecting the entire industry.
Nuvion Group, the parent company of Fastway Couriers Ireland and Parcel Connect, entered receivership on Tuesday, putting at least 300 Irish jobs at risk. In addition to full-time positions, over 500 part-time and contract roles could also be affected. This development has sparked alarm among transport workers and business owners alike.
Ger Hyland, president of the Irish Road Haulage Association (IRHA), highlighted the severe financial impact of Fastway’s closure on hauliers. He stated that many businesses are facing losses of thousands of euros, which could trigger a “domino effect” of further closures in the industry.
“Fastway’s main hub was in Portarlington in Co. Offaly. The loss of that many jobs to a town like that is like Dublin losing 10,000,” he said. “So many people are out of work with eight weeks to go until Christmas and they need to keep up their payments on their own vans.”
Hyland emphasized that the transport sector plays a crucial role in keeping the economy moving. However, he noted that the current situation indicates that the industry is facing significant challenges.
“We’re the wheels that keep this economy turning. But with the likes of Fastway, it’s now becoming very obvious that the wheels are starting to come off the wagon.”
He pointed out that job losses at Fastway were not unexpected and would primarily affect rural contractors who are left responsible for fuel and vehicle payments. “We really are an industry in crisis,” he said.
Hyland also mentioned that the transport sector pays 32% of its turnover in direct Government taxes, which is significantly higher than other industries. He expressed frustration over the lack of support from the Government for transitioning to greener fuels.
“Months out from this, in the recent Budget, we pleaded with the Government to support us to transition to green HVO [hydrotreated vegetable oil] fuels, which would have greatly reduced our carbon footprint, but we got nothing. We just got hit harder by the Government with a 2c-per-litre carbon tax further eating into our already small margins.”
This additional tax will result in thousands of euros in extra costs for transport-based companies starting in January. For example, Hyland’s own business is expected to incur over €15,000 in additional carbon tax costs annually. In addition, tolls across the road network will increase, including an extra 10c charge for using the M50 and Port Tunnel in Dublin.
The Department of Enterprise has been contacted for comment on the situation.
John Clendennen, Fine Gael TD for Offaly, described the uncertainty surrounding the future of Fastway staff as a “cloud of uncertainty.” He noted that the business came to a halt on Tuesday night, with gates locked and no further communication beyond the statement issued by the receivers.
“I’m very conscious in the short term that there is stock in a warehouse in Portarlington that may be perishable, and I’ve had a number of businesses in touch in relation to that.”
Clendennen added that the situation is particularly difficult for employees trying to protect their jobs and for businesses that relied on Fastway’s services for years, especially with Christmas approaching.
Fastway recently lost two major contracts with fashion retailer Asos and Sports Direct. In response, Minister for Social Protection Dara Calleary announced that income supports will be available for impacted employees, including assistance with finding alternative employment and accessing education or training.
“The new Jobseeker’s Pay-Related Benefit is available to employees who lose their job and meet the eligibility conditions,” Mr. Calleary said.