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Shannon Aerospace in Possible Trouble - Irish Job News - News on Jobs for Ireland


Shannon Aerospace in Possible Trouble

19 March 2007 | Ireland | 1 Response by paul savage.

Jobs at Shannon Aerospace (www.shannonaerospace.com) could be in jeopardy according to a report in the Sunday Independant. Martin Kaiser is quoted as saying the company is “certainly a danger of it closing down”. Shannon Aerospace, an aviation overhaul company, which employs 700 staff in their offices in Shannon, Co. Clare, are a subsidiary of Lufthansa Tecknik AG.

Shannon Aerospace Logo

Mr Kaiser continued, he warned that if by April 30th a pay resolution  with SIPTU isn’t achieved  “the future of the company will not be decided by local management here but by our main shareholder, the German airline Lufthansa” . Shannon Aerospace has had an on going confrontation with workers and SIPTU over pay levels and costs.

We’re sure that this will be one of the hot jobs new topics in the coming month in Ireland, let’s hope that this all pans out for the best.

1 Response

  1. A. Nonymous. said on 21 Sep 2010 at 7:15 pm

    The new CEO of Shannon Aerospace Ltd, Thomas Ruckert, is about to introduce major cost-cutting measures at the Aircraft Maintenance Hangar!

    This is set to include Voluntary Redundancies, large Pay Cuts, Pension Scheme review, withdrawl of certain Benefits and the “out-sourcing” of some of its staff.

    Although Mr. Ruckert has conferred/brainstormed with his Executive Team, his new Business Plan has yet to be approved by the Lufthansa Technique Board.

    Any implementations are sure to be announced by the CEO towards the end of October 2010 and will, no doubt, be met with fierce resistance from SIPTU, which represents over half of the 700 strong workforce.

    Reasons for the extreme measures:
    1)Besides being “top heavy” and employing bad Business Practices over the past few years,SAL (Shannon Aerospace)is simply too expensive and in the current climate, where other European Maintenance Facilities are charging approx $45 per manhour, SAL’s rate of $70(approx)per manhour just can’t be maintained.
    So, to stay in business, SAL must reduce its current rates (to be in any way competitive)and therefore will need to reduce its capacity (staff)also.
    2) With the Global Recession ongoing, many Companies are simply jumping on the “band wagon” and coming up with excuses to introduce cost-cutting measures.
    While their swelling wallets are tearing at the seams, thousands of hard working people will be tearing at their hair worrying about mortgage repayments, education fees, simple expenses, and putting food on the table.

    With Lufthansa Technique’s $300million profit (approx) in 2009 (and remember, Shannon Aerospace is 100% owned by Lufthansa)perhaps they are doing ditto.

    Over the next few months, this is definately one to watch!

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