TROUBLED AVIATION maintenance firm SR Technics has said it will not be in a position to implement a Labour Court recommendation that it should provide additional funding for its redundancy programme for staff, or to finance any deficit in its pension fund.
The Labour Court yesterday recommended the firm should cover any deficit in its pension funds, which could cost up to €26 million.
The court’s recommendation also said the firm should effectively double funds offered in ex-gratia redundancy payments to staff being let go. This could have cost about €15 million.
In a statement last night, the firm said it was unable to provide additional funds for redundancies, or to finance any pension fund deficit. It would endeavour to implement other non-financial recommendations specified by the Labour Court.
SR Technics announced in February it was to close its plant at Dublin airport, with the loss of more than 1,100 jobs. Staff have argued the redundancy package on offer was “paltry and inadequate”, barely above statutory minimum levels. They expressed concern about the deficit in the pension fund, which has been estimated at €26 million. The first tranche of staff to be let go are expected to leave this week.
In its recommendation yesterday, the Labour Court said the ex-gratia element of the redundancy package offered to staff should be increased to €30 million, in full and final settlement.
It said benefits of both the SR Technics defined benefit pension scheme and the Irish Airlines’ Superannuation Scheme should be fully funded by the firm in respect of employees who are members of the schemes.
It said the court accepted that as there would be no further work available for staff from specific dates over the coming months, personnel concerned should be given payment in lieu of notice rather than working the notice periods.
The Labour Court recommendation was welcomed by the trade union Siptu. Branch organiser Pat Ward said: “It vindicates the case made by the unions that the company can afford to do a lot better than the bargain basement scheme they were offering.”
Last night SR Technics said it had told the Labour Court that while it respected its recommendation, “its redundancy budget was limited by the commercial and financial constraints which it faces and that it is not in a position to increase the funds which have been made available”.
In a statement in response, Siptu said it was disappointed but not surprised at the “mean-fisted response of SR Technics”.
It said it would be consulting with its members and the other unions immediately to decide the most appropriate strategy in the present circumstances.
