Aircraft maintenance firm Lufthansa Technik Airmotive Ireland (LTAI) has placed the 465 workers at its Rathcoole plant in Dublin on protective notice as unions called for the Tánaiste to intervene.
Describing the move as “regrettable and avoidable”, the company said this evening it had issued a letter to each employee notifying them of the introduction of layoffs, with effect from next Monday.
“It is anticipated that up to 150 staff, both direct and indirect, may need to be laid off in the immediate future,” LTAI said in the letter.
Yesterday, staff voted to reject Labour Court proposals on the introduction of new flexibility and work practice reforms.
In response the company said last night it had halted a planned $40 million investment in a new engine line as a result of the decision by the workers.
In its statement this evening, LTAI said it had sought a range of labour flexibility arrangements from members of the three trade unions represented in the facility, none of which involve job losses or cuts in basic pay.
“Securing these arrangements would clear the way for the investment of a new engine line, which is critical to the future of LTAI,” it said.
LTAI said that the engine inputs the investment would have generated “will no longer be available to the company in 2009 or future years.
“This fact, taken together with the existing shortfall in engine inputs due to the global recession, means that the level of work in the plant both at present and in the future is not sufficient to sustain the current workforce,” it said.
The unions at the company confirmed last night that workers had voted against the Labour Court recommendations, and said they wanted further talks with management.
LTAI, a wholly owned subsidiary of Lufthansa Technik, specialises in the maintenance and overhaul of CFM56-3, CFM56-7 and JT9D engines.
The Technical, Electrical and Engineering Union (TEEU) called on Tánaiste and Minister for Enterprise Mary Coughlan to intervene.
Regional secretary Ian McDonnell said it was "unfortunate that the company did not seek to engage with us before taking this step, which we only heard about from the media".
“The TEEU and other unions remain available for talks to resolve the dispute. The latest Labour Court
recommendation was only rejected by a narrow margin yesterday and when we told the local management the result we stressed that we remained available for talks and felt a resolution was in sight," Mr McDonnell said.
“Unfortunately the impact of the company’s proposal, even as amended by the Labour Court, could mean cuts of up 25 per cent in earnings. Workers affected by the changes just felt they could not absorb cuts of this level."
Mr McDonnell said given the "imminent threat" of closure at SR Technics in north Dublin also, it was possible the State would have "no aviation sector left within a matter of weeks".
"It is imperative that the Tanaiste, as the relevant minister, and agencies such as the IDA, become involved in devising a rescue package for the sector. In the meantime we remain available for talks.”
SIPTU Branch Organiser Teresa Hannick called on LTAI to re-enter talks with unions.
"Given the very narrow rejection of the cost cutting proposals I think it is unfortunate that the company decided to issue protective notice to all its employees," she said.
"When we told them the ballot result yesterday we stressed that we were available for further talks and that we believed that the narrow margin could be reversed if some of the outstanding concerns of the members were addressed. It is very disappointing that instead of responding, or at least notifying us of their intentions they should announce the decision to issue protective notices through the media."