IDA assessing SR Technics proposals

THREE PROPOSALS are being evaluated by the IDA for the acquisition of the SR Technics plant, Minister for Enterprise, Trade and…

THREE PROPOSALS are being evaluated by the IDA for the acquisition of the SR Technics plant, Minister for Enterprise, Trade and Employment Mary Coughlan said.

She told the Dáil yesterday that a confidential meeting had taken place on Friday with the companies involved. “Discussions are ongoing,” she added.

Ms Coughlan said “I believe that one in particular, which is perceived as a management buy-out in consultation with the unions, is the proposal that everyone is discussing”.

SR Technics has confirmed that it will tomorrow begin the first phase of the closure of its plant at Dublin airport with about 600 staff being made redundant.

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The company said that a further 100 employees would be let go later this month and all remaining activities were expected to be wound down or transferred to other providers by August 31st.

It said that the decision to close the Dublin operation was taken only after carrying out a detailed review of all operations across the entire SR Technics Group.

It said the recent loss of major contracts in Dublin, the current business and economic forecasts, and the high cost base of the operation meant it would not be possible “to fill resulting capacity gaps with sustainable business”.

Bernd Kessler, chief executive of SR Technics, said: “This is a very difficult decision . . . we fully understand the impact of the decision to implement the wind-down”.

The company yesterday rejected a Labour Court recommendation calling on it to double the level of funding for its redundancy programme and to address any deficit in its pension scheme.

Unions have argued that the current redundancy package is “paltry and inadequate”. They have also expressed concern about a deficit in the pension fund which has been estimated at €26 million.

Unions yesterday said that they would be recommending to members that they accept the Labour Court proposals.

The unions at the plant are to hold a mass meeting of staff today and last night they said that they would discuss future options based on the result of the ballot.

Yesterday morning over 200 SR Technics workers blocked the main entrance to Dublin airport for a period as part of a protest against the planned closure.

There were delays due to heavy traffic on approach roads to the airport, however, no flights were cancelled as a result of the action.

David Glennon, a spokesman for the workers, said that employees didn’t expect the company to reconsider its decision not to follow the Labour Court’s recommendations.