Dublin Airport Authority employees who are members of Siptu have today voted to accept a €40 million cost-reduction programme.
The vote, which was carried by 1,121 to 541, will see the implementation of the plan which will lead to the loss of 275 permanent and 100 temporary jobs at Dublin, Cork and Shannon airports.
The programme, which was recommended by union officials, also includes a pay freeze until 2011.
In a bid to avoid pay cuts, the plan will also lead to the introduction of a novel Employee Recovery Investment Contribution scheme with staff facing pay reductions of on average 5.5 per cent with effect from February. Under the scheme employees will invest a percentage of their earnings and will recoup the monies after three years or when the company is restored to profitability
The DAA said last July it was facing a €70 million earnings shortfall due to significant falls in passenger traffic and commercial income. The State-owned airport manager also said it expected “minimal passenger growth” up to 2011.
A €1m once-off fund will be set aside under the new plan and will be paid out to participating staff if the agreed cost recovery target is met.
The cost reduction programme was agreed at the Labour Relations Commission with officials from the trade unions Siptu, Mandate and Impact.
“I welcome this decision by Siptu members at the DAA. We sincerely believe these proposals have the potential to provide sustainable quality jobs. In addition, they provide a realistic platform to ensure that staff are favourably positioned for all future challenges,” said union organiser Dermot O’Loughlin.
