Monday 18 December 2006

Employment & Industrial Relations

After months of stalemate, management at Shannon Airport has presented to unions what it terms "final" cost-cutting proposals aimed at reducing the overmanning at the airport and saving some €10m per year. The plan calls for more than 200 voluntary redundancies, coupled with increased flexibility in work practices and rosters from those who remain behind. In the new environment the aircraft and ground catering division will be outsourced and franchises brought in. The total cost of the restructuring package is estimated at around €35m. Those opting for redundancy will receive between seven and ten weeks' per year of service, to a maximum of 145 weeks. Staff aged over 55 can opt for early retirement while additional incentives will be aimed at those over 60. Employees choosing to remain will receive a €10k lump sum, presumably in return for the increased flexibility demanded. Unions are expected to ballot their members on the proposals over the coming weeks.