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SR Technics to resume payment of pension contributions for workers facing redundancy and Works Forum adopts SIPTU rescue plan

Date Released: 05 Mar 2009

SR Technics has agreed to resume payment of the employer’s contributions to the workers pension fund today. It had stopped making the contributions on February 5.

However it has also informed the unions that it only has €48 million available for redundancy payments. Two-thirds of this would be needed to pay the statutory entitlement of two weeks' pay per year of service, leaving only enough for another week on top of the legal minimum.

SIPTU Branch Organiser Pat Ward said after the meeting that, “We told them this was totally unacceptable and in breach of commitments given in 1998 that they would match the equivalent Aer Lingus redundancy packages, which would equate to around six weeks' pay per year of service.

“We did achieve some progress in securing agreement from management that the consultation process would continue until March 31. SR Technics had wanted to wind up negotiations by March 14. This will at least secure an extra fortnight’s employment for workers and extra time to explore alternative plans to save these jobs.

“The company has agreed to seek the assistance of the Director of Conciliation Services at the Labour Relations Commission, Kevin Foley, in concluding the current process. Mr. Foley, who played a leading role in resolving the recent Aer Lingus disputes has kindly offered his services to us.

“Our primary aim is to secure employment for the workforce. So far there have been no expressions of interest that involve a Transfer of Undertakings, in other words that would provide for continued employment at the Dublin plant.

“However the Works Forum has adopted the SIPTU Contingency Plan, which includes provision for the workforce, including the Dublin management, to take over the company with the assistance of the IDA and the use of the hangars for three years from the Dublin Airport Authority for an initial, three year start-up period.”