Threat to 465 jobs at aircraft plant

A DUBLIN-based aircraft maintenance company has threatened to close with the loss of 465 jobs if staff do not lift an overtime ban which has been ongoing for three months.

Lufthansa Technik Airmotive Ireland yesterday told staff at the Rathcoole facility that unless the overtime ban imposed last March the survival of the company was at risk and closing was most likely.

The firm said the unions were carrying out the action in pursuit of a 2.5% pay increase sought under the last national wage agreement but said that agreement had collapsed.

“When this matter was brought before the Labour Court in 2010, no recommendation was made by the Court with regard to actual pay rates,” the company said.

It added that despite difficult business, it had maintained employment levels and avoided wage cuts.

“Negotiation of any wage increase is simply not possible,” it said. “As a result of the industrial action, very serious damage has been caused to output from the plant, with orders being turned away, customer confidence badly eroded, and trading losses expected.”

Teresa Hannick of SIPTU said she was surprised at the move. She said an agreement had been reached with the Irish management of the company as late as last Friday but it appeared that had not been agreed by management at the parent company in German.

Enterprise Minister Richard Bruton urged both sides to enter talks: “In the interest of ensuring the continued viability of the operation, I would encourage both parties to meet under the auspices of the Labour Relations Commission as soon as possible with a view to exploring ways of resolving the immediate issues at dispute and also the underlying issues that have given rise to the industrial relations problems at the plant,” he said.