SR Technics on collision course as it rejects redundancy ruling

TROUBLED airline maintenance firm SR Technics last night rejected a Labour Court recommendation that it increase pension and redundancy contributions by more than €40 million.

In a move which could spark serious industrial action, the firm said its budget was limited by commercial and financial constraints and it would not be able to increase the funds which it could make available.

SR Technics is to let the first 600 of its 1,135 staff at Dublin Airport go on Friday. The rest will be let go by August. The Swiss company lost its most lucrative Dublin-based contract, Aer Lingus, last year and has decided to move remaining operations to Zurich.

Workers, unhappy at the closure, were angry at what they saw as the paltry sum being set aside for redundancy payments and were even more incensed when they realised there would be a significant shortfall in the company’s pension contribution.

After their unions intervened, the case was referred to the Labour Relations Commission, which then forwarded it on to the Labour Court.

Yesterday afternoon the court recommended SR Technics should double the funding available for its redundancy package, from e15m to e30m, and should fund deficits in its pension funds expected to total over e26m. In a nod to the company it also said SR Technics should not be obliged to retain staff for whom there is no work.

SIPTU, which represents the bulk of workers, initially welcomed the recommendation, though it still held out hope a management buyout could save up to 900 jobs.

However, when the union heard the company was not prepared to pay the money, branch organiser Pat Ward said the union was “disappointed, but not surprised at the mean-fisted response”.

“In stating that the company should meet the deficit in the employee pension funds the court was doing no more than asking SR Technics to meet its moral and financial obligations to the workers. They have not alone treated their workers with disrespect, but the Labour Court and the Labour Relations Commission as well,” he said. “This is a company backed by some of the wealthiest business people in the world, including Mubadala, the sovereign investment vehicle for the Emirate of Abu Dhabi, yet it says it can barely afford to pay statutory redundancy to its workers, 60% of which will be refunded by the Irish taxpayer.

Our primary concern is to save as many jobs as possible at the Dublin facility and secure decent severance packages for workers who are laid off. We will be consulting with members and the other unions at SR Technics immediately to decide the most appropriate strategy in the present circumstances. Every option will be examined and assessed on the basis of its effectiveness to protect the workers’ interests.”