Aer Lingus to axe 1500 jobs
07.10.08
Aer Lingus is to cut up to 1500 jobs through redundancy and outsourcing as part of a €74 million (£57 million) cost-saving programme. The Irish airline's cabin crew base at Heathrow is to be closed, but it is believed the company's hub at Belfast International Airport will not be affected.
The cabin crew base at Shannon will also close and services from New York, Boston and San Francisco will be staffed with US-based cabin crew from the summer of 2009. The airline said all ground operations - including check-in, baggage handling - cargo and catering service will be axed at Dublin Airport and outsourced, while ground operations in Cork will also be cut.
There will be voluntary redundancy or early retirement packages for cabin crew and ground staff in airports, catering and cargo divisions, and those who do not take redundancy may transfer to a new service provider.
Staff were also told that there would be a pay freeze until the end of 2009. Sick pay entitlements will also be reduced. New contracts which will introduce performance-related pay and abolish traditional increments will also be brought in .A deadline of 1 November has been set for the implementation of the plan.
However, the SIPTU trade union has said it will ballot its members for all-out industrial action. Union secretary Gerry McCormack said: ‘It represents a fire-sale of good quality jobs by a management that can see no further than the next quarter's profit and loss sheet,’ said.'
The Impact trade union said the proposals as draconian and severe. A spokesman said: 'Impact will be consulting with its members employed at Aer Lingus before any further steps are undertaken.'
The news came as Aer Lingus reported total passenger numbers grew by 3.7% last month compared to a year earlier, with a 4.2% increase in passenger numbers on short haul with long haul performing in line with last year's levels.
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