Workers at the Lufthansa-owned Technik aircraft maintenance business in Shannon are set for their first general pay increase in nine years.
It follows a Labour Court recommendation that the workers receive a 4.5% pay increase, in spite of the company, Lufthansa Technik Shannon Ltd, stating that it “absolutely cannot afford” to do so.
The dispute, between Siptu and the aircraft maintenance firm, could not be resolved at local level, and was the subject of a conciliation conference, under the auspices of the Workplace Relations Commission.
However, no agreement was reached there and the case was referred to the Labour Court, and a hearing was held.
In its argument before the Labour Court, Siptu claimed that there had been no general pay increases for the workers since 2008 and that, after years of cuts and sacrifices, the workers were seeking a substantial increase to basic pay to recover lost ground. Siptu pointed out that the company has been profitable for the last four years and the workers have contributed enormously to the turnaround.
Making its case, Lufthansa Technik told the Labour Court that the company “absolutely cannot afford a general pay increase, on top of its current pay system”.
The firm said that the company has made very modest trading profits over the past five years.
It added that it wants to introduce a remuneration model, whereby employees will have a choice of the combination of pay and benefits which best suit their needs.
The Labour Court said that a 2% pay rise be made effective from January 1, 2017, and a 2.5% with effect from January 1, 2018.
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