Lufthansa overtime dispute set for LRC

THE LABOUR Relations Commission is expected to convene talks with Lufthansa Tecknik Airmotive Ireland and union representatives to try and resolve a pay dispute that has threatened 460 jobs at an engine overhaul facility in Rathcoole, Co Dublin.

It is understood that the LRC’s director of conciliation Kevin Foley yesterday invited management and the company’s three unions – Unite, Siptu and the TEEU – to talks on Friday morning and all sides have agreed to attend.

His intervention followed a warning issued to workers yesterday by management at Lufthansa that the facility could close if a staff-imposed ban on overtime was not lifted.

Lufthansa said the overtime ban had resulted in customer orders being turned away and the facility was now trading at a loss.

“The survival of the company is at risk and closing is most likely,” Lufthansa said yesterday.

Some orders are believed to have been lost to Lufthansa’s plant in Hamburg.

Unite said the announcement was “hasty and unhelpful” in the context of the “ongoing negotiations” taking place.

The overtime ban relates to a 2.5 per cent pay rise dating back to 2009 under the last national wage agreement and has been in place since March.

While a Labour Court ruling found the company was technically in breach of the Towards 2016 wage deal, it did not order payment of the increase.

Two rounds of talks have taken place at the LRC in recent months and negotiations had also been held at local level.

“This had produced a set of proposals that were to be put to the workers within days,” Unite regional officer Willie Quigley said.

Lufthansa drafted alternative proposals that would have resulted in a financial benefit for staff, he said.

This is believed to have included a provision allowing staff one hour a week for banking. This element has since been withdrawn by the company.

“We had a set of proposals that was on the verge of going to decision by the members which has now been pulled away and we need to find out the reasons why before we can resolve this for the good of all,” said Mr Quigley.

Minister for Enterprise Richard Bruton is believed to have intervened directly in the dispute.

This followed meetings in recent weeks with the company, at Lufthansa’s request.

Mr Bruton urged both sides to meet at the LRC “as soon as possible with a view to exploring ways of resolving the immediate issues at dispute”.

Lufthansa acquired the Rathcoole facility in 1997. It was set up in 1980 by Aer Lingus and operated as Airmotive Ireland.

In January 2010, Lufthansa announced an IDA-backed $40 million investment to equip the plant for the maintenance, repair and overhaul of IAE V2500 engines, which are used by Lufthansa and other carriers.