More than 100 jobs are being cut at a Honeywell plant in Waterford that manufactures parts for the aircraft industry. A total of 67 employees have accepted a voluntary severance package, and the remaining 39 redundancies will be implemented before the end of the year.

The company, which employs close to 1,000 in the Republic, is one of Waterford's biggest employers and will continue to have 630 staff there when the current reorganisation is completed.

The job cuts are being implemented at Garrett Engine Boosting Systems, one of four business units operated by Honeywell in the city.

In a statement, the company said the move was necessitated by the "global economic environment".

An agreement had been reached with the general workforce that would see employees remaining in the company receive a guaranteed salary in return for substantially increased productivity, the statement added.

The workers concerned have been paid on hourly rates to date.

Implementation of the new standards began on Monday.