Conor Lenihan (Dublin South West, Fianna Fail)

I thank the Deputy for raising this matter on the Adjournment.

On 12 February SR Technics announced that it would close its operation at Dublin Airport and enter into consultation with the trade unions representing the 1,135 employees at the facility. The company cited the recent loss of major contracts from primary load customers in Dublin, current business and economic forecasts, as well as the high cost base of the operations, as the primary causes in this regard. It also indicated its view that it would not be possible to fill the resulting capacity gaps with sustainable business in the medium term.

In the interim, IDA Ireland and the Tánaiste and Minister for Enterprise, Trade and Employment have had numerous meetings with the company to express the Government's concern regarding the impact the closure will have on the economy of north Dublin and the effect the loss of 1,135 highly skilled jobs will have on the Irish aviation sector. IDA Ireland and Enterprise Ireland established a team to market the operation internationally through their overseas office network and have held discussions with more than 15 companies to encourage them to put forward investment proposals to take over all or part of the operation. Following receipt of proposals, a full evaluation will take place and each proposal will be considered on its merits and long-term viability.

The company has indicated that it has received up to 30 expressions of interest in parts of the operation and has stated that any approach or proposal would be considered in detail and evaluated in full on its merits and potential long-term benefit. At this stage, SR Technics has received five bids from interested parties for parts of the business and is currently assessing these. Following the assessment process, SR Technics will select a successful bidder. In tandem with this process, the agencies are in discussions with the interested parties on an ongoing basis to assess the viability of the bids so as to be in a position to offer appropriate support to the successful bidders to maximize the level of sustainable employment in the resulting operations.

Lufthansa Airmotive currently employs some 460 workers at its Rathcoole facility and has been planning to introduce a new engine facility, which would both secure the future and lead to an increase in employment at the plant. As part of this process, the company has been seeking agreement with the workforce regarding the introduction of flexible working arrangements and work practice reforms. Following failure to agree, the Tánaiste and Minister for Enterprise, Trade and Employment discussed the situation with both management and unions and the full services of the Labour Relations Commission and the Labour Court have been provided to assist in finding a way forward. Following six LRC hearings and a full Labour Court hearing, I understand staff at the plant yesterday voted against the proposals drawn up by the Labour Court by a margin of 17 votes out of a total of 279 cast. In a statement last night, the company said it had now halted the planned investment in the new engine line and has also issued protective notice to all workers.

The Tánaiste and Minister for Enterprise, Trade and Employment remains seriously concerned for the future of the company and activities relating to it in Ireland. As a further and perhaps final opportunity to try to resolve the problem, the national implementation body, which consists of Government, employer and union representatives, is also meeting to try to provide assistance. There is no doubt that if the current impasse in Lufthansa Technik Airmotive Ireland is not resolved swiftly, these highly skilled jobs will be lost. The Tánaiste and Minister for Enterprise, Trade and Employment is also of the view that this will have a disastrous impact on other parts of the aviation sector in Ireland which depend on business from the company. She urges the parties to re-engage immediately in order that a solution to the current impasse might be found.

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