SR Technics pension fund short €26m

THE STAFF pension fund at troubled aviation company SR Technics, which is due to close with the loss of around 1,100 jobs, has…

THE STAFF pension fund at troubled aviation company SR Technics, which is due to close with the loss of around 1,100 jobs, has a deficit of more than €26 million.

It is understood the details of the deficit were set out to employees at the company yesterday by trustees of the fund.

SR Technics has indicated to staff that it will not be in a position to plug any financial shortfall in the pension fund.

Around 500 workers from SR Technics yesterday staged a march in Dublin city centre to highlight a number of issues surrounding the closure of the firm.

READ MORE

The workers met with officials of the European Commission Office in Dublin, and set out their fears about what they said was an inadequate redundancy package, and concerns about the pension fund.

Unions at the plant have maintained that staff have been offered less than one week’s pay above their statutory entitlements by the company.

Meanwhile, in a statement last night, SR Technics said it was serious about examining all expressions from parties interested in taking over all or part of the company’s operation at Dublin airport, regardless of whether this could result in greater competition for its own operations abroad.

“Contrary to claims which have been made by parties involved in the consultation process, SR Technics continues to be fully committed to exploring all options for the survival or part-survival of the business.

“The company will facilitate the continued operation of the business in Ireland if a financially viable offer is made, and a decision in this respect will be taken irrespective of any potential impact on SR Technics’ other locations, including those in Zurich.

“The expressions of interest will be evaluated on their own merits, and SR Technics will continue to regularly update the SRT Union Forum on the status of this process,” it said.

SR Technics said the redundancy package on offer to staff and its ability to fund the pension scheme was “limited by the financial resources available to the wider group in the context of severely challenging market conditions and the need to restructure the group to ensure its survival”.

“Despite the financial pressures on the wider SR Technics group, the elements of the redundancy programme, including the formulae used for the distribution of the ex-gratia payment, have been proposed to ensure a fair and equitable overall severance package for employees in the company.

“SR Technics group is fully aware of the impact that the closure of the Dublin facility will have on the workforce, and while it will continue to engage with the SRT Union Forum, its ability to meet the requests of the forum are severely limited by the financial position of the group.”