AER LINGUS'S plan to introduce nearly 1,500 job cuts through out-sourcing, voluntary redundancy or early retirement is unstoppable, the airline's chief executive, Dermot Mannion, said yesterday.
In a webcast message to staff, he said the company's financial position had deteriorated significantly over recent months. Mr Mannion said that while fuel costs had improved, consumer demand had worsened significantly.
Overall, the company was facing operating losses this year and further significant operating losses next year, he said. It was critical that the company got "to the other side" of the current cost-containment plan in the weeks ahead.
Aer Lingus chief financial officer Seán Coyle said it would be issuing an interim financial statement next week confirming losses of more than €20 million this year.
Mr Mannion said that the redundancy and early retirement packages on offer reflected the years of loyalty shown by staff.
Siptu has warned that passengers face major disruption in the run-up to Christmas unless a new process is found to deal with the dispute. It is to announce the results of a ballot on industrial action today.
Aer Lingus yesterday published details of its voluntary severance and early retirement schemes.
These will allow staff a number of options, including a €40,000 (maximum €70,000) lump sum, nine weeks' basic pay per year of service subject to a maximum of 145 weeks or four weeks' pay per year of service to a maximum of 104 weeks, plus a service bonus of €2,750 per year of service, depending on circumstances.