DAA to cut 350 jobs at three major airports
DUBLIN Airport Authority (DAA) is expected to axe up to 350 jobs at the country's three main airports as part of a €70m cost-cutting plan.
The airport management company is planning to announce the job losses following on the resolution of a dispute with unions over the payment of €3m in increments.
Fears of a threatened strike at Dublin, Cork and Shannon airports have lifted after the Labour Court ordered the DAA to pay the increases in a recommendation just released.
But the court warned unions they must accept that the DAA would implement "cost reductions of a similar value to the increments".
Welcomed
SIPTU welcomed the court's recommendation last night and said it would give it "time to negotiate the forthcoming Cost Recovery programme".
Meanwhile, sources revealed that Dublin Airport Authority plans to cut staff numbers by 350, including 80 managers, after it forecast the first drop in passenger numbers for 18 years.
It is understood that the company, which has more than 3,600 employees, is considering announcing the cutbacks this week and will present staff with proposals, including job losses, pay cuts and changes to work practices.
The authority recently hinted that job cuts were on the way after announcing a 28pc drop in profits last year. It also anticipates an 11pc fall in passenger numbers this year.
The Labour Court recommended that the increments be paid in return for a "clear commitment" by the unions to engage with the authority on the cost cuts.
In their submission to the court last week, the DAA unions insisted their employer could afford the increments after enjoying €800m profits over the last nine years.
It said the increments were due to up to 70pc of the authority's workers.
The document sent by SIPTU, Impact, the TEEU, UCATT and Unite, calculated that workers would suffer a 13pc drop in earnings if the increases were not paid. The unions estimated the cost of the increments and pay deal would only equate to around 1.6pc of all payroll and related costs.Dublin Airport Authority said it wanted the increments to be deferred while it drew up a plan to address a shortfall of €60m to €70m.
It said failure to address this shortfall could result in it "losing control of its affairs".
The dispute caused serious embarrassment for SIPTU earlier this year.
General president Jack O'Connor intervened at the start of the month when the civil aviation branch served notice on the DAA, despite the Irish Congress of Trade Unions' decision to call off a national strike in order to return to social partnership talks.
Strike notice was withdrawn after Mr O'Connor revealed he had not sanctioned it.
The Labour Relations Commission convened a meeting of the parties but failed to find a resolution and the dispute was referred to the Labour Court.
- Anne-Marie Walsh, Industry Correspondent
