AIRCRAFT MAINTENANCE company SR Technics said it needs to reach agreement with workers on cost-cutting measures by the end of the week if it is to sign a crucial new contract with Aer Lingus.
This comes after an ultimatum from Aer Lingus which has threatened to withdraw from a key maintenance deal if contracts are not signed by this Sunday.
The Dublin airport-based company, which employs 1,200 people, lost three of its four key contracts with its biggest customer, Aer Lingus, earlier this year.
In a letter to SR Technics, deputy chief executive of Aer Lingus Niall Walsh said it was "imperative that contracts be signed and that the new arrangements be in effect as and from 1st June".
Mr Walsh wrote: "Failure to implement the new arrangements by this date will leave us with no option but to withdraw from the current process and seek alternative sources for the provision of these maintenance services.
"In view of the urgency of this matter, we would therefore require that you confirm by return that you will be in a position to execute the relevant contractual documentation and implement the new arrangements from 1st June 2008," he added in the letter.
A spokeswoman for SR Technics would not comment on what would happen if agreement with unions was not reached by the end of the week. The firm is expected to resume talks with trade unions at the Labour Relations Commission today as agreement on new working arrangements were not reached during talks on Monday. These talks are expected to last at least until tomorrow, a spokeswoman for the company said.
As part of the proposals, the company is seeking to introduce 12-hour shifts for line maintenance staff and 11-hour night shifts, as well as cost-cutting measures.
The firm had set a deadline of last Friday to reform working arrangements, but failed to reach agreement with unions.
