Shannon staff set to accept layoffs deal

The voluntary redundancy of 200 Shannon airport workers is expected to start next month if the 550 staff at the airport, as expected…

The voluntary redundancy of 200 Shannon airport workers is expected to start next month if the 550 staff at the airport, as expected, vote in favour of the airport's €36 million "survival plan".

As part of the deal agreed between unions and management yesterday, the 350 employees that remain on are to share an estimated windfall of €5.6 million (or €16,000 each) in recognition of changed work practices in the new regime at Shannon.

All three unions involved - Siptu, Impact and the TEUU - are to recommend to their members that they accept the deal. Balloting is expected to be complete before the end of next week.

In January, unions at Shannon overwhelmingly rejected a €34 million survival plan and the revised package was yesterday valued at €36 million.

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The balloting by the unions of the package is expected to put on hold a threat by the Shannon Airport Authority (SAA) to commence the first phase of the laying off of 90 temporary staff tomorrow - Siptu members had voted for industrial action if the layoffs began.

The revised package will provide for a redundancy package of €100,000 for those employees with more than 24 years experience. The catering operation at the airport is to be outsourced, and those workers in catering who take redundancy but opt to transfer to the new operation will also be entitled to the full redundancy terms.

The deal also allows catering employees who do not opt for redundancy and who transfer to the new outsourced catering operation to have the same conditions and entitlements as they had with the SAA.

One long-serving staff member last night described the overall package as "a great deal for staff".

Siptu's Michael Halpenny said the deal provides for improvements in working practices.

"We have reached a situation where we can recommend that the workers accept the deal. It is a better deal that what was there before," he said.

SAA executive chairman Pat Shanahan said: "On the basis that this agreement delivers the €10 million in annual cost savings required and that it has the full support of the LRC, the trade unions and management, we welcome it as a significant first step towards ensuring Shannon airport's financial viability . . ."

Gordon Deegan

Gordon Deegan

Gordon Deegan is a contributor to The Irish Times