Concern mounts over future of Liebherr plant

Business leaders in Killarney, Co Kerry, are growing increasingly concerned about the future of the Liebherr crane factory, which is beset by an industrial relations impasse.

Earlier this week, a majority of Siptu members at the 670-job plant rejected a Labour Court recommendation for a 2.5% pay rise backdated to May 2012.

The recommendation — accepted by the company on condition the union agreed to changed work practices — was aimed at resolving pay issues dating to 2009.

The union’s rejection of the recommendation caused surprise and disappointment in Killarney, where Liebherr is the biggest manufacturing industry, worth €40m in wages annually.

Killarney Chamber of Commerce and Tourism president Johnny McGuire yesterday said worries about Liebherr’s future in the area were a huge concern.

“It beggars belief we’re in this situation where the company is threatening to put work from Killarney elsewhere,’’ said Mr McGuire.

The multinational, in Killarney for 56 years, has said it is “re-evaluating’’ its dependency on the local plant and will continue to send work to some of its other plants in Europe during 2014.

Meanwhile, as further mediation is awaited, the company and the union are taking time to consider the implications of the Siptu vote.

Siptu organiser Marie Kearney said the union was not ruling anything out and were looking at a “suite of options”, adding that Siptu was always available for further negotiations. “We will be consulting fully with our members on where we go from here.”

Liebherr, part of a corporate giant embracing 130 companies spread across all continents, has invested around €50m in Killarney in recent years.

In 2012, Isolde Liebherr, daughter of the founder, Hans Liebherr, and currently a director of the company, gave a commitment to long-term investment in the area.

However, the failure to find a resolution to issues surrounding pay and working conditions, as well as warnings from the company about its future in Killarney, are giving rise to serious concerns locally.