The Dublin Airport Authority (DAA) will withdraw a €30 million restructuring deal for Shannon airport if unions don't agree to accept it before the end of this week.
The DAA's director for change, John Horgan, announced the ultimatum yesterday and accused the unions of refusing to engage in the talks around the restructuring at Shannon airport.
The DAA's plan for Shannon seeks to cut the workforce of 520 through 200 voluntary redundancies and outsource work in a number of areas at the airport, including catering.
Warning that Shannon airport faces a financial crisis and is set to lose €130 million over the next 10 years if its cost base is not addressed, Mr Horgan said: "The DAA has offered to pay €30 million for an agreed restructuring of the airport, but the unions have refused to talk about it."
Talks on the future of the airport have been going on for a year and Mr Horgan said: "There have been more than 50 meetings. We have been to all the State's industrial relations machinery and institutions, but the unions have still refused to engage in negotiations and they make no secret of the fact that they won't engage, despite the fact that everyone has asked them to do so."
Mr Horgan described the talks process around Shannon "as the most frustrating experience in 35 years in industrial relations".
Mr Horgan said that Shannon would make a small profit this year, "but not sufficient for an airport with over three million passengers going through it".
However, he added that Shannon airport had an "enormous future" if it can be competitive.
Last April, the Labour Court imposed a two-month deadline for the talks on the future of the airport to be completed and both sides agreed to a media blackout while the talks continued.
However, speaking publicly yesterday for the first time since the Labour Court decision, Mr Horgan said that company management told unions on September 5th that, if the €30 million package was not accepted or voted upon by the end of September, that it would be withdrawn.
He said: "We thought enough is enough. It looks like that the unions are not going to ballot. We believe that the majority of the employees do want to accept it, but we could be wrong."
Mr Horgan said that if unions don't accept the deal, the airport will take steps to make savings in the operation of the airport.
Under the terms of the deal on offer, the 300 workers at Shannon airport who opt to remain will receive lump payments of up to €10,000.
The voluntary redundancy package gives staff with more than 24 years' experience a €100,000 pay-off, while entitling workers to their company pensions at 55.
