SR Technics rejects redundancy increase recommendation

Troubled aircraft maintenance firm SR Technics tonight rejected a Labour Court recommendation that it meet the shortfall in its pension fund and effectively double its good-will redundancy payments.

In a statement released this evening, the company said it respected recommendations made by the Labour Court.

However, the company stressed that its redundancy budget was limited by "the commercial and financial constraints which it faces" and that it was "not in a position to increase the funds which have been made available"

"SR Technics fully understands the difficult labour market conditions faced by its employees and has already provided funding for the redundancy package in excess of the statutory minimum requirement. "the company said.

"Due to the financial and commercial challenges which the SR Technics Group is facing as a result of the severe downturn in the global aviation sector, it is unable to provide additional funds for the redundancy budget or to finance any pension fund deficit. However, the company will endeavour to implement the non-financial recommendations specified by the Labour Court.

Management at SR Technics, which is headquartered in Switzerland, have blamed the pending closure of its Irish operation and the loss of 1,135 jobs on rising costs, the global downturn, and loss of four key contracts.

Workers had demanded the Zurich firm pay adequate redundancy packages and meet its pension responsibilities.

It is believed the deficit is around €26m and trade union SIPTU had demanded the struggling company pay up. The union also said the court recommended a good-will payment of one week’s wages be doubled to two weeks' pay, on top of the statutory two weeks per year of service to which each worker is entitled.

Pat Ward, branch organiser, had earlier said the Labour Court’s recommendation signalled SR was not as hard-up as management claimed.