Shannon Aerospace workers reject Labour Court recommendation over pension scheme

Friday 24 January 2014 19.20
Shannon Aerospace had announced it would cease making contributions to the pension scheme
Shannon Aerospace had announced it would cease making contributions to the pension scheme

Workers at aviation maintenance company Shannon Aerospace have overwhelmingly rejected a Labour Court recommendation aimed at resolving a dispute over the management's plans to close the defined benefit pension scheme.

The company had announced to staff that it would cease making contributions to the pension scheme, which is solvent, from 3 February.

The Labour Court recommended that both sides should maintain the status quo for two months to allow for negotiations. 

Shannon Aerospace management had accepted the recommendation.

However, it has emerged this evening that 92% of staff voted to reject the recommendation. The turnout was around 88%.

A spokesperson for Shannon Aerospace said the board would be considering the ballot result over the weekend.

She said it is still very open to negotiations and want to talk to the unions.

She said the company was happy to talk to staff in accordance with the Labour Court recommendation.

SIPTU has not issued a formal comment on the ballot result at Shannon Aerospace.

However, informed union sources described the situation as being in a "cooling-off period" until Monday evening. 

They also insisted there was no threat to jobs. 

The company began operating in 1990 and employs around 500 people.