Liebherr to ‘re-evaluate’ Irish plant operations

A multinational corporation is “re-evaluating’’ its dependency on its 670-job Irish operation following a Labour Court recommendation that it pay back money to Siptu workers.

Liebherr, which has been manufacturing container cranes in Killarney, Co Kerry, since 1958, said plans for further expansion and increased employment at the plant are now in jeopardy, and some work is being transferred to its overseas plants.

In a statement yesterday, the company said it was disappointed with a Labour Court recommendation that it pay 2.5% in back pay, which will automatically be received by all of its Killarney employees.

The recommendation arose from a dispute at the plant and a one-day strike by 300 Siptu members. The payment will be backdated 21 months.

Siptu organiser Marie Kearney said the union was seeking clarification of a number of points and described the Liebherr statement as “extremely unhelpful”.

Given Liebherr’s importance to the economy — the company pays €40m in wages and €30m to suppliers annually — the situation is causing concern locally.

While the German company had consistently stated the workers are not entitled to back pay, it said in its statement the money will be paid provided agreement is reached on changed work practices.

It had created 150 jobs in Killarney in the past 18 months and that trend was set to continue “until recent events unfolded”.

“This proposed increase will compromise Liebherr’s ability to remain competitive in the marketplace as well as within the Liebherr Group going forward,’’ the company said.

It will also reconsider the components which will be manufactured in Killarney, saying that work is being sent to Liebherr plants in Germany, a process that will continue in 2014.

“The uncertain future in respect of such recently encountered industrial action means that Liebherr has now to re-evaluate its dependency on their Killarney plant. The company is most disappointed with recent developments considering its commitment to Killarney over 55 years.”

It further claimed that a minority of employees and unreasonable pay awards seriously compromised the plant’s viability.

Siptu’s Marie Kearney said the union was seeking clarification of a number of points, for the avoidance of doubt, in the Labour Court recommendation concerning the pay claim due to workers since 2009.

The workers had a number of concerns in relation to the recommendation, she said.

“A statement issued by the management of Liebherr in relation to the recommendation has proven extremely unhelpful and calls into doubt the company’s commitment to respecting the terms of the Labour Court recommendation,’’ she said.

“It is hoped that further correspondence with the Labour Court will clarify the issues of concern.”