Lufthansa workers reject Labour Court deal

THE future of 435 staff at Dublin-based aircraft maintenance firm Lufthansa Technik Airmotive Ireland (LTAI) was plunged into further doubt last night after workers rejected a Labour Court recommendation on cost savings at the plant.

The German-owned company has been warning for several weeks that it will put a planned $40 million (e30m) investment in its Dublin operation on hold if workers do not agree to new terms and conditions.

Without that investment it has said the contract for a new engine type will go to another facility within the organisation and outside Ireland. That, it has claimed, would lead to a cut in workers’ hours and the eventual wind-down of the Dublin facility.

Staff rejected the company’s initial proposed changes earlier this month. Those included a reduction to the shift premium which currently stands at 20% of basic pay. Unions said Lufthansa also only wanted to pay for half of the overtime worked each week with the rest to be banked and returned later either as cash, or as time of in lieu, at the company’s discretion.

The margin of rejection in that vote was 40 votes. At that point both sides agreed to go to the Labour Court.

Last night the company issued a statement in which it said: “The Labour Court issued a detailed recommendation late last Friday. This morning LTAI management confirmed to the Labour Court its acceptance of the court’s recommendations. This afternoon by a margin of 17 votes out of 279 cast, union members voted not to accept these. Accordingly, the proposed new US$40m investment in the new engine line is stopped. LTAI management has now begun preparing plans to deal with the current and future situation.”

A spokesman for the two main unions, SIPTU and the Technical, Electrical and Engineering Union, confirmed the margin of the vote and said they would be seeking further discussions with the company.