Over 400 job losses at Lufthansa Technik

An aircraft maintenance company is to close one of its engine repair plants in Co Dublin with the loss of more than 400 jobs.

Lufthansa Technik Airmotive Ireland had been in talks with unions for several weeks after announcing plans to shut its facility in Rathcoole.

The confirmed yesterday that due to falling business as well as fewer international market opportunities, it would close the factory. Some 411 workers are being laid off.

In a statement, the firm said it had been considering an offer to sell the business.

“An offer from an outside party to take over the facility did not lead to any acceptable offer.

“Negotiations with the three trade unions and employee representatives failed to identify any viable alternatives or to reach agreement on severance terms,” management said.

Workers have been offered statutory redundancy.

In November staff were informed that the plant was to close and negotiations were opened with Siptu, Unite, and the Technical Engineering and Electrical Union (TEEU).

A Labour Court hearing is expected to decide on ex- gratia redundancy terms and proposals to deal with a €10m pension fund deficit.

The plant — set up in 1980 by Aer Lingus with Lufthansa Technik taking a 60% shareholding in 1997 and full ownership in 1999 — specialised in the repair and overhaul of engines.

Union leader Arthur Hall condemned the move by the firm to issue notice yesterday morning, claiming it would not dare treat its German staff the same way.

Mr Hall said TEEU was in the middle of talks with local management at the Labour Court and heard the news during a brief recess.

“There was no prior consultation whatsoever,” he said. He said the job cuts will have major adverse implications for workers at the plant, many of whom have been employed for more than 17 years.

“These are highly skilled craft workers but because those skills are specialised it is extremely unlikely that they will find employment again in Ireland,” he added.

“This is the worst news these 410 employees and their families could receive at Christmas time.”

He also accused Lufthansa Technik Airmotive in Germany of reneging on a commitment secured in earlier talks to provide workers with six weeks’ pay per year of service, instead of statutory redundancy, plus four weeks’ pay per year of service, and a cap on lump sums of two years’ salary.