Unions angered by move to discuss job cuts at Shannon

Unions reacted angrily yesterday to confirmation by Shannon Airport that it is to seek talks on a rationalisation programme, …

Unions reacted angrily yesterday to confirmation by Shannon Airport that it is to seek talks on a rationalisation programme, including job cuts. They claimed the move was a breach of a commitment given by the Government that the break-up of Aer Rianta would not result in job losses. In a separate development, the Dublin Airport Authority announced the appointment of former Esso Ireland chairman Mr Declan Collier as its chief executive.

He is currently based in London with Esso's parent company, ExxonMobil, and will take up his new post in April.

Mr Collier's appointment was overshadowed by the developing row over the proposed job cuts at Shannon, which remains under Dublin control until the separation of the three State airports is finalised.

At a meeting yesterday, the board of the Dublin Airport Authority was notified by its Shannon counterpart of its intention to open talks with the unions on job reductions.

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In a statement issued later, the Shannon Airport Authority said the talks were required "to address the unacceptable budgetary outlook at Shannon for the year ahead and beyond".

"As part of the required improvement in Shannon's cost profile, it is envisaged that the numbers of jobs directly involved in managing the airport will be reduced," it said.

A spokeswoman refused to confirm reports that the number of job cuts envisaged was as many as 260, about half the staff. She said the airport had never put a figure on the level of reductions required and this would only become clear during the consultation process with unions.

Union leaders, however, indicated they would be reluctant to enter such a process in the first place.

Mr Michael Halpenny, national industrial secretary with SIPTU, said the union would have a "major problem" discussing job reductions, given that the Government had provided "specific assurances" about security of employment and terms and conditions at Dublin, Cork and Shannon airports.

"These assurances were subsequently enshrined in the State Airports Act 2004," he said.

"Any move to effect redundancy in Shannon would be completely contrary to these assurances and we will be insisting that these protections are upheld in full and will strenuously oppose any attempt to depart from them."

He said it was difficult to reconcile Shannon Airport's plan to increase passenger numbers by 1.5 million this year, as a result of its recent deal with Ryanair, with its assertion that it had too many staff.

The Technical, Engineering and Electrical Union said job cuts could "spell the death knell" for Shannon, and undermine the viability of Dublin Airport, which would have to fund any redundancy programme.

Chris Dooley

Chris Dooley

Chris Dooley is Foreign Editor of The Irish Times