Container firm workers stage pensions protest

UPWARDS of 350 staff at the Liebherr container crane factory in Killarney, Co Kerry, yesterday downed tools in a one-day stoppage over pensions.

The union, which has also banned overtime, warned that the action could be part of a series of one-day stoppages. The action was agreed in a ballot of SIPTU members at the plant.

The German-owned factory, which manufactures cranes for major ports around of the world, has been enjoying a boom in recent years and has close to 500 employees A decision by the company to close off a defined benefit pension scheme to new employees has led to industrial action.

SIPTU official Donal Tobin said the workers had rejected a Labour Court recommendation that a defined contribution pension scheme be introduced, instead, for new employees.

“The Labour Court’s recommendation would be less favourable to the workers.

We have an obligation to try and maintain employment standards and conditions for our members,” he stated.

“We are available for talks at all times, but we must ensure our members have a decent pension when they retire and not be depending solely on the state pension.

“We hope to resolve these difficulties sooner rather than later,” he went on.

The company has been in Killarney for 50 years and continues to be one of Kerry’s top employers, long after many other big manufacturers have gone of business in the county.

Liebherr personnel manager Tom Foley expressed great disappointment’ at the union’s actions.

He said the company had paid an extra €3.42 million into the pension scheme over a three-year period on the understanding that the defined benefit scheme would then be closed to new employees.

“This was a strict condition demanded by the holding company,” he said.

Mr Foley also stressed that while the company was willing to resume talks on pensions, the reopening of the defined benefit scheme was not up for discussion.

Liebherr is by far largest industrial employer in the Killarney area, but Mr Foley warned that an industrial dispute could undermine its future.

“Your members would do well to reflect on the amount of manufacturing remaining in this part of the country,” he said in a letter to union chiefs which has also been circulated to workers.

“Once more, the threat to ban overtime has made the company conclude that it cannot depend on overtime as a tool for creating additional productive capacity.

“This and the threat of one-day stoppages has forced an urgent rethink of our current employment level,” he continued.

According to the company, the gross salary of employees last year averaged €48,500, with more than 100 employees earning well in excess of that.