Lufthansa staff warned on shutdown

The aircraft engine maintenance company Lufthansa Technik Airmotive Ireland (LTAI) has warned that a rejection by staff of proposals…

The aircraft engine maintenance company Lufthansa Technik Airmotive Ireland (LTAI) has warned that a rejection by staff of proposals on greater workplace flexibility tomorrow would lead to the eventual wind-down of the facility at Rathcoole, Co Dublin.

The company said in a statement today that a planned US$40 million investment at the plant would not proceed if the management proposals were not approved by union members in a vote tomorrow.

Around 465 people are currently employed at the aircraft engine overhaul facility. The company said that its flexibility proposals did not involve any job losses or pay cuts.

It said that if the investment in the plant were to go ahead it would secure its future for the next 15 years.

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"The termination of the US$40 million investment by LTAI's parent company will result in a new engine type going to another facility within the organisation, and will inevitably lead to notice of layoffs and short week working by the end of this week. This in turn will lead to the eventual wind-down of the facility, and the consequent loss of jobs there", it said.

It is understood that the engines currently maintained at the Irish plant will soon be obsolete.

Martin Wall

Martin Wall

Martin Wall is the former Washington Correspondent of The Irish Times. He was previously industry correspondent