EC Approves €7.4 million For Former SR Technics Ireland Workers

Tuesday, 21 September 2010 11:20

Written by Noel Cotter

The European Commission today approved an application from Ireland for assistance under the EU Globalisation Adjustment Fund to help retrain former employees of SR Technics Ireland Ltd in Dublin.

The €7.4 million aid package will be used to help 850 redundant workers back into employment.

The application was submitted after 1,135 employees were made redundant by SR Technics Ireland Ltd operating in the aircraft maintenance sector. The application will now be sent to the European Parliament and EU Ministers (the EU's Budgetary Authority) for approval.

"The fall in air transport activity following the financial and economic crisis has placed enormous cost strain on airlines and subsequently reduced the volume of maintenance, repair and overhaul (MRO) activities worldwide. This put enormous pressure on companies operating in the aircraft maintenance sector, such as SR Technics", said László Andor, EU Commissioner for Employment, Social Affairs and Inclusion.

He added: "We are confident that the planned measures will help these workers to upgrade their skills and facilitate their transition to a new job with a better future".

The Irish application relates to 1,135 redundancies in SR Technics Ireland Ltd, an enterprise operating in the aircraft maintenance sector. Due to the crisis, the model followed by airlines changed from one of 'full service' MRO contracts to specialisation and contract division. In this way the airlines replace a single MRO contract with several smaller ones, selected for cost advantages. SR Technics lost two significant contracts for this reason: one with Aer Lingus and one with Gulf Air.

The vast majority of the SR Technics workers live in the Dublin region (the SR Technics plant is situated at Dublin Airport) and counties Meath, Kildare and Louth, and whilst no redundancies directly linked to SR Technics have been reported at suppliers or downstream producers, the loss in revenues due to the redundancies in SR Technics is expected to generate significant losses in indirect employment caused by loss in workers’ incomes and a reduction in SR Technics purchases of goods and services locally and regionally.

The package of EGF assistance for the former workers of SR Technics will help 850 of the most disadvantaged workers back into employment by offering them:

·    guidance and training,
·    on- and off-the-job training,
·    third level education
·    promotion of entrepreneurship and self-employment.

The total estimated cost of the package is almost € 11.5 million, of which the European Union has been asked to provide EGF assistance of € 7.4 million.