Aircraft maintenance firm SR Technics is to shed almost 200 jobs in a major restructuring, which it says is crucial to maintain competitiveness.
The company, which currently employs 1,200 workers, announced the plan to union representatives yesterday. Under the plan, the company will make 155 direct staff and 40 indirect staff redundant.
A company spokesperson said that the aircraft maintenance sector had changed significantly in recent years, and that SR Technics was facing serious competition from low cost economies, particularly in Eastern Europe.
Apart from the redundancies, the recovery plan provides for significant work practice and roster changes which could affect overtime. It said these changes would be essential to make the company viable.
The spokeswoman warned that if the company does not achieve the required level of redundancies on a voluntary basis, they will seek compulsory redundancies.
She also said that apart from the redundancies, the company needed staff to agree to the work practice reforms.
They will be reducing their capacity for maintenance in their hangars from 1 million manhours to 660,000.
The company is to present the full recovery plan document to staff later today.
SIPTU's National Industrial Secretary Michael Halpenny said that any changes would have to be by agreement.
He also said that as far as the union was concerned, any redundancies would have to be voluntary.
The Swiss company, which took over the operations of the former TEAM Aer Lingus aircraft maintenance operation in Dublin, yesterday confirmed that it and its main investors 3i and Star Capital, had concluded a $325m asset backed financial deal. This company said this money will contribute to further funding the group's growth.
The company reported underlying earnings of 126 million Swiss francs for last year in May. This was up 21% on 2003.
