12.12.2013

Liebherr reconsiders Irish production

Liebherr Container Cranes has said that it will re-evaluate the future of its plant in Killarney, Ireland following a strike by a minority of its work force followed by a labour court decision last week.

The company, which has manufactured in Ireland for more than 55 years, says that it has already started to transfer some component production to its plants in Germany and that it was "most disappointed by the court’s recommendations and the actions of a minority of its employees, which had seriously compromised the viability and future competitiveness of the plant.

Liebherr employs around 670 at the Killarney plant, of which 300 are represented by the SIPTU union, which has been demanding a 2.5 percent pay rise backdated to 2009. Average pay for a skilled worker at the plant is €52,000. The union called its member out on strike last month as well as banning overtime, it has also picketed the plant when customers have visited.

Last week the Labour court recommended the company pay the increase and back date it 21 months. It also published a list of recommendations to both sides, which the company has accepted, stating that while the back pay is not due, it will be paid as long as an agreement is reached to change work practices.

The Liebherr plant is one of the region’s largest employers with an annual wage bill of over €40 million, while spending a further €30 million with local to suppliers. It has created 150 jobs over the past 18 months and said that trend was set to continue until recent events unfolded.

The union says that it is seeking clarification of a number of points and described the Liebherr statement as “extremely unhelpful”.