Workers begin strike at turbine firm in pension scheme row

AROUND 180 workers went on strike yesterday in response to a company’s plans to restructure their pensions.

The industrial action started at 4pm when workers turned up for the nightshift at a Cork company, which specialises in maintaining and repairing turbines for the aircraft industry.

SIFCO Ireland employs about 250 people. The majority of the workforce, which is split between two plants at Carrigtwohill in Co Cork and Blackrock in Cork city, are represented by SIPTU.

Pickets were placed at both plants yesterday evening, and SIPTU branch secretary John Pearson said workers would continue to picket the plants throughout the weekend.

Mr Pearson said SIFCO had made an agreement recently to sell off part of its Blackrock operation to another firm and to transfer the workforce as well.

“We have an agreement (with SIFCO) to a defined benefits pension. The company wants to change that to a defined contribution scheme. They also want to introduce this at the Carrigtwohill plant,” Mr Pearson said.

He said the difference between the two schemes was that the defined benefits pension was guaranteed, while the other one was subject to investment markets, which can produce “volatile” situations.

“We decided to ballot our members on industrial action. The company then decided to propose an amended scheme, which has been rejected,” Mr Pearson said.

He added workers didn’t want to take strike action, but were not prepared to see a dilution of their pension scheme. He said SIPTU told the company they were available to engage in meaningful discussions.

SIFCO Industries, the division’s US-based parent, has agreed the sale of its Large Aerospace Turbine Engine Component Repair business, based at Cork’s Mahon Industrial Estate, to Swiss company SR Technics for about e8 million. The sale is expected to be completed at the end of this month.

A spokesperson from SIFCO refused to comment on the situation last night.