Over 300 union members recently participated in a ballot on a merger proposal of the old Lufthansa Technik Shannon (LTS – formerly Shannon Aerospace) Hangar 1 and the AAG operation (Hangar 2).
Initially the company had run both as separate operations but decided to merge them into a single entity, which would allow technicians under this new agreement to be moved flexibly between hangars, to improve efficiency, aircraft turn-around times (a key competitive factor with airline clients) and long-term job security.
Rather than pursue a transfer of undertakings process, the company chose to negotiate the merger directly with SIPTU in Hangar 1 and both SIPTU and Connect in Hangar 2.
Talks began early in 2025 and were completed and balloted on in recent weeks. The company had sought an aggregate ballot across both hangars but SIPTU members, who are employed in both locations, viewed the votes in each hangar as being separate votes. The ballot in Hanger 2 was aggregated between both SIPTU and Connect members.
The proposal was passed by a majority in each hangar. The vote in Hangar 2 was overwhelmingly in favour of the deal and while the margin was smaller in Hangar 1, it was still a decisive vote in favour.
On acceptance of the proposal the vast majority of our members will receive the following pay increases: pay will increase as follows
- 5% from 1st January, 2025 (H2) and July 1, 2025 (H1)
- 25% from 1st January, 2026 (H2) and April 1, 2026 (H2)
- 3% from 1st January, 2027 (H1 & H2)
- 3% from 1st January, 2028 (H1 & H2)
- Deal expires 31st December, 2028.
Other benefits secured for our members include:
- Changes in shift working include the removal of ‘varitime’ rostered Sundays in H1, which means staff will not be required to work on 12 consecutive days or a full weekend every month.
- A voluntary flexi-shift is being introduced in H1, for up to 40 workers, while varitime is being introduced on a voluntary basis in H2, for up to 130 workers. Increased time off in lieu bank limits are to be available for those on days and flexi-shifts, with reduced notice periods for greater flexibility.
- Guaranteed opportunities for extended leave of up to four weeks are being introduced from May to September, with two consecutive weeks.
- The pay scales in both hangars are being merged into single unified scales, with consistent minimum and maximum ranges across the company. This may allow some currently at the top of their scale to progress further on new expanded scales.
- A new bonus scheme is to be introduced, with the potential to earn up to €400 per annum based on company performance, with half of this dependent on safety performance and the other half dependent on quality and delivery metrics. Also, 20% of net profit exceeding the budget is to be shared equally among all employees.
- On healthcare benefits, the existing scheme at H1 is to be retained for current staff, although no new entrants are to join it. For those in H2, and for new hires in both hangars, a €1,200 tax-efficient voucher is to be provided towards healthcare (this compares with a €1,000 voucher for healthcare in H2 up to now).
- The new agreement also provides for one company-paid leave day for red weather alerts in each calendar year for each employee, in recognition of employee safety, while being cognisant of the substantial cost involved.