DAA offers workers up to two years’ wages in redundancy plan

Semi-State that operates Dublin and Cork airports expects big drop in passengers

DAA’s chief executive told staff that anyone with four years’ continuous service up to July 31st, 2020, could apply for voluntary severance. Photograph: Dara Mac Dónaill

DAA’s chief executive told staff that anyone with four years’ continuous service up to July 31st, 2020, could apply for voluntary severance. Photograph: Dara Mac Dónaill

 

Semi-State company DAA will offer workers at Dublin and Cork airports up to two years’ wages in voluntary redundancy payments as it bids to cut jobs.

The company, which runs the two airports, said last week that it needed to reduce its 3,500-strong workforce by a possible 1,000 to cater for a dramatic fall in air travellers following the Covid-19 crisis.

Dalton Philips, DAA chief executive, told staff in a note on Tuesday that anyone with four years’ continuous service up to July 31st, 2020, could apply for voluntary severance.

DAA will offer four weeks’ pay for each completed year of service, plus statutory redundancy of two weeks’ per year, up to a maximum of 104 weeks, to workers under 60 who opt to leave. The company may also pay €10,000 for education or training in new skills. This will be included in the capped 104-week payment.

Those aged 60-65 will get four weeks’ pay for every year of completed service, along with statutory redundancy and the education payment.

That is also subject to a maximum of 104 weeks, along with an overall cap of 50 per cent of basic pay between now and the worker’s normal retirement date, including the lump sum, statutory payment and education support.

Career breaks

Those aged 50-59 with more than 15 years’ service will be offered one year’s basic pay, but DAA will continue to pay up to a third of their salary until their normal retirement date.

Those aged 55-59 will receive two years’ basic salary and continue to receive up to a third of their salary until normal retirement.

DAA is also offering career breaks to anyone who has been with the company for more than a year. The company will pay a percentage of salary to those availing of this while they are on their break, even if they take up other jobs.

“Under the career-break option, you will continue to be paid a portion of your DAA salary even if you take another job, and your connection with the company is maintained throughout the entire period,” Mr Philips writes.

There will be a position for those returning after a break at an agreed date in the future.

Anyone taking a career break for up to two years will get 20 per cent of their basic pay. Those opting for a break of two to five years will get 50 per cent of their salaries until December 31st this year and 20 per cent after that.

Cut hours

All workers, irrespective of their length of service, can choose to permanently cut their hours.

Mr Philips’s note points out that the Department of Transport would have to approve these conditions.

Trade unions, including Siptu, which represent workers at both airports have already warned that any redundancies must be voluntary.

DAA has not put a figure on the number of redundancies it is seeking. However, the company expects overall passenger numbers at Dublin and Cork to be 21 million next year, down from a combined total of 35.5 million in 2019.

The last time Dublin and Cork airports handled 21 million passengers, they employed 1,000 fewer workers.