€4m from state ‘could have saved 700 jobs’ at aircraft firm

A GOVERNMENT intervention of just €4 million would have saved an additional 700 jobs at airline maintenance firm SR Technics, SIPTU has claimed.

Yesterday it emerged that the Zurich-based firm had agreed to sell the bulk of its aircraft maintenance operation in north Dublin to Dublin Aerospace Ltd, a group led by Irish aviation executive Conor McCarthy.

It is expected that this intervention could save 250 of the 1,135 jobs that have been lost since SR Technics decided to pull out of Dublin and focus operations elsewhere.

However, SIPTU branch organiser Pat Ward said a Government investment of an additional €4m could have saved a further 700 jobs.

“The Government’s policy in handling the SR Technics crisis has secured the minimum possible number of jobs and ministers should refrain from clapping themselves on the back over the outcome,” he said.

“If Dublin Aerospace does take over the plant, it is reported the cost will be around €21.2m. But the management buyout package that would have involved the workers as well, and led to the maintenance of the full range of facilities at Dublin, was rejected because the Government would not assist with helping finance the workers’ €25m bid.

“If it had, then 960 jobs would have been secured, including those of 60 apprentices.”

Mr Ward said that while Tánaiste and Enterprise Minister Mary Coughlan had expressed satisfaction with the outcome of the deal, he could not say the same for the workforce.

The union also claimed it had been informed by the IDA that the status of the proposed sale of SR Technics’ Irish operation to Dublin Aerospace was by no means certain.

“The bid has been described to us as a credible expression of interest, rather than a done deal by the IDA,” said Mr Ward. “This is a far cry from the gloss that the minister and the Department of Enterprise, Trade and Employment have been putting on it.

“While we would welcome the news that up to 250 jobs might be saved at SR Technics as the result of a takeover by Dublin Aerospace Ltd, at this point in time we do not know if one single job will be saved.

“We hope the Government is not simply engaged in a pre-election gimmick to try and assuage the widespread anger in north county Dublin at the way in which this crisis has been handled to date.”

However, the department rubbished such suggestions, saying the new deal was “agreed in principle” after a deal of negotiation and after a bid from a company in the Middle East fell through.