Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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3. To ask the Minister for Jobs, Enterprise and Innovation in view of the recent job losses at Lufthansa Technik Airmotive Ireland, if he will step in to ensure the protection of skilled Airmotive jobs, keep the plant viable as an aircraft engine overhaul facility and ensure that all redundancies owed will be paid; and if he will make a statement on the matter. [3146/14]

Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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In the Visitors Gallery there is a delegation of workers from Lufthansa Technik Airmotive Ireland, 400 of whom have learned in recent weeks that they will lose their jobs. Sixty-five were laid off last week, with the remainder to go in the coming weeks and months. I am asking on their behalf whether the Government intends to do anything to seek to save and maintain this highly skilled workforce and the skills base they represent in an industry the Government has designated a priority. In addition, will the Minister address the question of the pension deficit left behind, in a context where, as the workers understand it, €40 million of IDA Ireland money was given to the company? What has become of that money and can some of it be retrieved to fill the pension gap or maintain the plant and the jobs it provides, thereby facilitating Ireland's involvement in this industry?

Richard Bruton (Dublin North Central, Fine Gael)
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Prior to this very unfortunate closure decision, I had kept in close contact with this case. In fact, I met senior company executives several times, including just before the announcement. The position is that the company has had to undertake a global review of its operations in the light of shrinking revenues and declining market opportunities. This decision was taken by the parent company on strictly commercial grounds in the face of a declining business that had also caused the closure of some of its plants in Germany.

The plant to which the Deputy refers carried out skilled maintenance on the engine casings of jet engines, which requires a particularly skilled and high value level of expertise. This work is crucial for the ongoing safety and efficiency of aircraft engines. Lufthansa has several plants worldwide engaged in this aspect of engine maintenance. However, owing to changes in the industry worldwide, including modern engines requiring less maintenance, over-capacity in the industry, increased competition from Asia and contractual obligations imposed by both aircraft and engine manufacturers, the company is facing over-capacity which necessitates the closure of several of its operations worldwide, including the plant at Rathcoole.

The Government is committed to the retention and expansion of skilled manufacturing jobs in the economy. Our new manufacturing strategy document which I launched last year sets out an ambitious target of creating an additional 20,000 jobs in the sector by 2016. Key recommendations of the strategy have been incorporated into the Action Plan for Jobs and are being pursued by my Department and the enterprise development agencies. While employment in the overall sector has increased by almost 8,000 jobs in the past year alone, parts of the aircraft maintenance sub-sector are under severe pressure owing to the changing dynamics of that industry. Nevertheless, we have several vibrant companies involved in various aspects of aircraft maintenance, employing some 4,000 staff. The strategy for the new Shannon Airport operation envisages the development of a vibrant aerospace sector at that airport. Part of that strategy has identified maintenance, repair and overhaul activities as a potential sector for development. Lufthansa's two other maintenance operations at Shannon employ a total of 770 staff.

IDA Ireland, in conjunction with Enterprise Ireland, has been actively seeking to pursue new employment opportunities for workers being made redundant by Lufthansa in Rathcoole. The agencies have been targeting and engaging with existing and prospective clients, highlighting the skills and capabilities of the Irish-based employees as a key attractor. The agencies have had ongoing engagement with the relevant education and training bodies to evaluate potential training and upskilling supports for Lufthansa employees.

The question of settling the level of redundancy payments to the former employees was considered in the Labour Court recently. Payment of the recommended terms is now a matter for the company.

Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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This is a strategic closure by Lufthansa. The idea that we have a contracting market opportunity is nonsense. The reality is that the aircraft industry is booming. The Government's commitment to seek investment and expand employment in this area is proof of that. The Government is taking that approach because it knows it is an industry that is expanding. Therefore, we should not take too seriously what Lufthansa is stating. This is a strategic closure in its own interest by a company which, at a large meeting in Hamburg on 10 December, spoke about the ambitious growth plans to be implemented in the coming months and referred to its dominant position in the market and so on. That is the reality.

I am glad to hear of the Minister's commitment to protect skilled jobs in this industry. In that context, it makes absolutely no sense to allow these jobs and this skills base to be lost and for the plant to be stripped down, as it will be, if we do not intervene in some way. The workers particularly want to know about the €40 million that was put in. They understood that €40 million was conditional on the plant being maintained. The State is a shareholder in Aer Lingus. The workers also tell me that a load of CFM engines will come on the market soon for maintenance and overhaul and that this work could be done in Rathcoole if we were to maintain the plant and these jobs.

Richard Bruton (Dublin North Central, Fine Gael)
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Grants provided by IDA Ireland are always subject to legal conditions. If a grant is provided and the company does not fulfil the conditions, the grant is repaid. The obligation to repay grants ceases when a company that spends many years in Ireland fulfils its programme of activity. That has always been the approach.

In any sector there are parts going down and rising. For example, some pharmaceutical plants have got into difficulty because their product sub-sector is in decline, but other areas are growing. It is not dissimilar in the aircraft sector: there are areas in difficulty and this is one of them. The evidence is strong and it is backed by our advisers in IDA Ireland that this sub-sector is in difficulty globally. Other areas, as the Deputy rightly says, are growing. In every sector our challenge is to make sure we can move our resources into the areas that are growing. It is not possible to keep every plant open if part of its business is no longer viable. That is the reality with which we must work in all companies.

Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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In the short time available I will not get into an argument with the Minister on this issue, except to say the workers have a different perspective, wide knowledge of the industry, skills and so on. They tell me there could be a glut of the engines in which they specialise in the market soon and that work could be done in Rathcoole but not if the plant is stripped down. I appeal to the Minister to meet the workers and hear their side of the story to see if there is anything that can be done. The Government is a stakeholder in the aircraft industry and these were Aer Lingus workers. It seems that where there is a general commitment from the Government to this industry and maintain the skilled jobs in it, we must do everything we can to see if these skilled jobs can be maintained.

What can we do to fill the pension deficit about which the workers are very concerned, given that a large sum of public money was given to Lufthansa? Can we put pressure on it to fill that gap? Can the State intervene in some way? I urge the Minister to meet the workers to discuss what can be done.

Richard Bruton (Dublin North Central, Fine Gael)
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I am very conscious of the difficulties any closure poses, but a company has to make decisions about its position. We seek and have sought to work with Lufthansa to put transformation programmes in place to support it. That has been a constant feature in recent years. I have met Lufthansa to make sure this offer is always on the table. Decisions of this nature are made ultimately by the company, not by me or IDA Ireland. The Labour Court recently considered the issue of redundancy payments and the conditions of former employees and payment of the recommended terms is now a matter for the company.

Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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Will the Minister meet the workers?

Richard Bruton (Dublin North Central, Fine Gael)
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I have met all of the Deputies. Unfortunately, a decision has been taken on this issue.

Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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Will the Minister meet the workers?

Richard Bruton (Dublin North Central, Fine Gael)
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I will have to consider that request. Unfortunately, I do not have a role at this point. The company has made a decision. That has been passed.

Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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What about the jobs?

Richard Bruton (Dublin North Central, Fine Gael)
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The challenge for me now is to find new opportunities. If proposals are forthcoming from workers that would help me and IDA Ireland to find an alternative, we will be delighted to receive them.