SR Technics will not pay final wage agreement rise

AIRCRAFT maintenance firm SR Technics, formerly known as TEAM Aer Lingus, has confirmed that it will not be paying its staff the final pay increase due under the national wage agreement Towards 2016.

The company, which employs 1,500 people is under financial pressure after it lost three of the four lucrative contracts it had held with Aer Lingus.

Before Christmas, the airline carried out a full review of its maintenance operations and decided to see what cost savings could be made. Prior to the tender process at the end of last year, SR Technics had held the wheels and brakes, components, base maintenance and line maintenance contracts for Aer Lingus.

However, it now only has the line maintenance function. As a result of the major loss of business it had been speculated in February that the company may have to slash up to 200 jobs.

Since then, it has been looking at a number of cost-saving initiatives and last night a company spokeswoman said: “SR Technics has announced the need for cost savings in the company which has resulted in the withholding of the final phase of the current national pay agreement.

“While the loss of the Aer Lingus contracts are not the only reason for this, they are associated with the need for these cost savings.

“SR Technics is actively engaged in discussions with the trade unions to look at ways in which we can achieve the necessary cost savings, through concessions and other measures,” he said. It is unclear if the company will claim inability to pay under the relevant provisions of the national wage agreement.