About 40 call-centre staff employed by Aer Lingus in the US have agreed to a long list of changes in their pay and conditions that could save the airline about €1 million a year.
Under the terms of the deal, which forms part of Aer Lingus's programme for continuous improvement (PCI) cost-cutting plan to save €20 million annually, the US-based staff have agreed to sign three-year contracts with fixed costs attached.
As a result, the airline has withdrawn the threat to outsource the function and there will be no forced redundancies in the US.
In the US, call-centre staff who are members of the International Association of Machinists and Aerospace Workers trade union will move to the union's pension fund, with Aer Lingus paying a fixed contribution a month similar to a defined contribution plan.
These staff were previously on a defined benefit scheme and the move means Aer Lingus no longer has long-term pension funding obligations to them.
Staff in the US have also agreed to the unlimited use of part-time employees and of telephone call agents working either in remote offices or in homes under monitoring from head office.
This will allow Aer Lingus to employ staff in different time zones in the US without having to pay a premium for working late or doing night shifts. This will become increasingly important for Aer Lingus as it seeks to develop its services from the west coast of the US. It currently operates from Los Angeles but plans to add flights to San Francisco under the open skies deal.
Staff have also agreed to "cross-functionality" of jobs with no premium paid by the airline. In addition, they have agreed to new productivity procedures for customer service and cost management.
Any new staff will join under the new pay and pension rules. This includes a reduction in the number of days they can take for illness, compassionate leave and annual holidays from 38 to 15.
Aer Lingus said the goal was to jointly develop a programme where the cost per call to the airline - including all staff, telecoms and support costs - would be less than any outsource option.
About 15-20 per cent of its bookings from the US are made through the call centre, which is based in New York. In percentage terms, this is roughly twice the volume handled by its call centre activities in Ireland.
Enda Corneille, Aer Lingus's commercial director, said the agreement was vital for the airline's growth plans in the US. "This is a significant and radical agreement which was successfully negotiated with the staff and their representatives."
In Ireland, meanwhile, the airline is believed to be close to agreeing a number of measures aimed at trimming its cost base under PCI on foot of recent recommendations from the Labour Court. The airline is due to meet representatives from Siptu and Impact next Tuesday to try to finalise an agreement.
