Around 300 jobs are to go on a voluntary basis at the country’s three main airports and remaining staff will face pay reductions of around 5.5 per cent on average under a €38 million cost containment deal reached between unions and management.
The deal, which has to go to ballot early in the New Year, will also involve the non-replacement of around 150 contract positions and the introduction of new work practices and reforms.
However the proposed agreement contains provision for the pay deductions to be recouped and the existing pay levels restored provided the company meets profit targets over a sustained period.
Existing arrangements for the payment of increments to staff at the Dublin Airport Authority, which operates the airports at Dublin, Cork and Shannon, will continue to apply under the terms of the agreement.
In a statement the Dublin Airport Authority said that it was facing financial difficulties due to the significant falls in passenger traffic and commercial income resulting from the economic downturn. It said that it had moved to address its cost base, as it was facing a €70 million earnings shortfall.
The company said that the deal had been agreed at the Labour Relations Commission with officials from the trade unions SIPTU, Mandate and Impact.
It said that it intended to begin the voluntary severance process once the agreement has been approved by staff in votes to take place early in the New Year.
Under the graduated pay reduction proposals, staff will face cuts of up to 12 per cent. However those earning less than €30,000 will not be affected.