Management at Liebherr Container Cranes in Killarney has issued a strong statement to workers outlining growing concern at industrial action by a majority of the 500 workers at the plant over a pensions scheme affecting new employees.
The move from a defined-benefit to defined-contribution scheme will not affect most employees at the 49-year-old and German-owned crane manufacturing plant.
The action by the 350 Siptu members includes one-day stoppages and a ban on overtime. Liebherr says it is pursuing alternative manufacturing sources; "a substantial amount" of work has already been redeployed from Killarney to other companies. This would intensify in the coming weeks.
Contracts for 46 fixed-term employees that expired on Saturday have been extended only to April 27th and recruitment, including interviews for new staff, have all been cancelled.
The statement also referred to "wildcat" action by Siptu workers earlier this week in which they refused to co-operate with non-union drivers collecting and delivering material. Liebherr says it regards this action as a serious escalation in the dispute.
The company statement, by way of an update to employees, comes amid growing nervousness in the tourist town about the industrial action.
Killarney, where tourism, a seasonal activity, is staffed in the main by migrant workers, has lost thousands of industrial jobs in the past decade which have not been replaced.
Liebherr, in which annual earnings for a 36.5-hour week by skilled personnel are €44,000, is the last remaining large industry in the locality.
Liebherr personnel manager Tom Foley said most other defined-benefit schemes in Ireland had been either closed to new employees or converted to defined-contribution schemes. To the company's knowledge there had been no industrial action at any other plant because of the changeover. He added that Liebherr had closed the defined-benefit scheme to safeguard existing members' pensions.
So far there have been two days of work stoppages. Talks between the union and management under the Labour Relations Commission a week ago ended without resolution.