Leo Varadkar (Dublin West, Fine Gael)
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Question 128: To ask the Tánaiste and Minister for Enterprise, Trade and Employment the action she has or will take in ensuring that a company (details supplied) is kept open; and if she will make a statement on the matter. [16637/09]

Mary Coughlan (Donegal South West, Fianna Fail)
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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 increased jobs at the plant. As part of this process, the company has been seeking agreement with the workers for the introduction of flexible working arrangements and work practice reforms.

Following failure to agree, I discussed the situation with both management and unions and the full services of the Labour Relations Commission and the Labour Court were provided to assist in finding a way forward. Following six LRC hearings and a full Labour Court hearing, the staff at the plant, last week, voted against the proposals drawn up by the Labour Court by a margin of 17 votes out of 279 cast. In a statement last Wednesday, the company said it had halted the planned investment in the new engine line and had also issued protective notice to all workers.

Following this, as a further and maybe a final opportunity to try and resolve the problem, the National Implementation Body, consisting of Government, employer and union representatives met with representatives from Lufthansa Technik Airmotive and UNITE, SIPTU and TEEU regarding the implications for the future of the Rathcoole plant.

In the course of discussions, both sides recognised the seriousness of the situation and expressed a firm desire to reach a speedy solution in the interests of maintaining the Rathcoole facility. The NIB recommended that both parties engage in urgent and intensive discussions, in the context of the Labour Court's Recommendation and presided over by IBEC and ICTU, to allow the $40m investment and jobs to be secured.

I understand that, following intensive discussions, a new set of proposals were agreed by unions and management at the facility and that the workers accepted these proposals.

I very much welcome this outcome which has come about due to the pragmatic and constructive approach adopted by management and unions at the Rathcoole facility.