THE FUTURE of aircraft engine maintenance company Lufthansa Technik Airmotive Ireland (LTAI) has again been thrown into doubt following a decision by staff to reject Labour Court proposals on the introduction of new flexibility and work practice reforms.
Staff at the plant, which employs about 470 workers, yesterday voted against the proposals drawn up by the Labour Court by a margin of 17 votes out of 279 cast.
In a statement last night the company said it had halted a planned $40 million investment in a new engine line as a result of the decision by the workers.
“LTAI management has now begun preparing plans to deal with the current and future situation.”
The company said the new investment was essential for the safety of the 465 jobs at the plant.
Earlier this month, after workers rejected proposals on work practice changes, management said the loss of the $40 million investment would “ lead to the eventual winding down of the plant”.
The company said in its statement that a full Labour Court hearing had been held last Thursday at the request of the three unions in LTAI over the unions’ rejection of earlier management proposals on a range of labour flexibility measures.
It said management had told the Labour Court yesterday that it had accepted the recommendations it put forward last Friday following the hearing.
The unions at the company confirmed last night that workers had voted against the Labour Court recommendations, and said they wanted further talks with management.
LTAI, a wholly owned subsidiary of Lufthansa Technik, specialises in the maintenance and overhaul of CFM56-3, CFM56-7 and JT9D engines.