NEWS WEBSITE OF THE YEAR

Belfast Telegraph

  • nijobfinder
  • nicarfinder
  • propertynews.com
  • Classified

Aer Lingus to axe 150 cabin crew in bid to cut €22m loss

Tuesday, 9 December 2008

Aer Lingus

Aer Lingus

Up to 154 Aer Lingus cabin crew in the Republic are set to lose their jobs after staff voted in favour of a plan to prevent the airline hiring US-based workers and closing two bases.

A total of 94 jobs will be axed at Dublin, Cork and Shannon airports and an extra 60 workers will be made redundant at Shannon Airport in a deal their union has described as “painful”.

Another 200 ground handling staff have already opted to leave the airline through a separate deal with SIPTU, bringing total redundancies to 354.

Cabin crew union Impact yesterday revealed that 59% of staff had voted in favour of a draft proposal brokered with management to cut the loss-making airline’s costs by €15m.

They backed a plan that will mean a slimmed-down Shannon base for cabin crew will be retained while staff recruited in Ireland will continue to man transatlantic flights.

Management had planned to hire US-based crew on flights to New York, Boston and San Francisco and close cabin crew bases in Shannon and Heathrow.

It also planned to outsource 1,300 ground handling jobs.

The airline later accepted alternative plans put forward by Impact and SIPTU following

lengthy talks at the Labour Relations Commission to prevent it forging ahead with its plans.

Last Friday the airline confirmed that the SIPTU plan to avoid outsourcing would take €25m off costs and it is likely to rubberstamp the Impact plan to make €15m savings within days.

The unions’ cost-cutting measures must make savings of €40m from a total of €50m in staff savings, the remainder coming from new contracts and a pay freeze.

The staff savings are part of an overall strategy to reduce the airline’s costs by €74m by downsizing operations.

The airline suffered €22m losses this year and predicts further losses next year. Aer Lingus chief executive Dermot Mannion said last night: “This decision by Impact is a milestone development for the airline and will enable us to deliver on our stated objectives of securing annual staff cost savings of €50m.

“The outcome of the vote today, combined with a significant reduction in the cost of fuel, underpins our ability to deliver growth for the future and secures our long haul service into and out of the Shannon region, and allows us to look at opportunities for short haul growth from Shannon airport.”

Impact last night admitted workers’ support for its plan was by no means “overwhelming” with the margin of 59% voting in favour of deal out of its 1,500 cabin crew members.

The SIPTU deal was far more popular with staff, with almost 80% giving it their backing.

But Impact insisted it had “significantly reduced” the 420 job losses that management had proposed.

The new deal also means staff have accepted new productivity measures, deferred pay increases under the national pay deal until July 2010 and new pay scales for recruits after five years.

The airline suffered €22m losses this year and predicts further losses next year.

Post a comment

Limit: 500 characters

View all comments that have been posted about this article

Comment
Your details

* Required field

Offensive or abusive comments will be removed and your IP address logged and may be used to prevent further submissions. In submitting a comment to the site, you agree to be bound by BelfastTelegraph.co.uk's Terms of Use.

Posts submitted in UPPERCASE letters will be rejected.

L'derry Chamber of Commerce Dinner

  • Minister for Regional Development Conor Murphy with Mayor Councillor Paul Fleming. Londonderry Chamber of Commerce Annual Dinner at The Everglades Hotel, Londonderry
  • The City of Hope Collective who performed during the Chamber of Commerce annual dinner
  • Rosa McLaughlin and John McMonagle with Minister for Regional Development, Conor Murphy. Londonderry Chamber of Commerce Annual Dinner at The Everglades Hotel.

Click here to view the gallery

NI Travel and Tourism Awards

  • Sean Crummey entertains guests at the Northern Ireland Travel and Tourism Awards 2009
  • Sean Crummey, Maureen Ledwith and Nan Short with Craig Doyle at the Slieve Donard Resort and Spa at the Northern Ireland Travel and Tourism Awards 2009
  • Rowan Devereux and Ciaran Mulligan of Blue Insurances with Craig Doyle at the Slieve Donard Resort and Spa at the Northern Ireland Travel and Tourism Awards 2009

NI Travel and Tourism Awards

Deloitte Technology Fast 50 Awards

  • From left to right, Daniel McRitchie (Andor Technology, placed 48 in this year?s Fast 50 ranking); Mark McCusker (Texthelp Systems Ltd, placed 40th in this year?s Fast 50 ranking); Trevor Jordan (Andor Technology); and Seamus Scullion (Texthelp Systems Ltd).
  • James Greer, proprietor of Greer Publications, presents the ?Rising Star? award to Mary McKenna and Paul McElvaney of Learning Pool Ltd.
  • From left to right: Daniel McRitchie and Trevor Jordan of Andor Technology.

Deloitte Technology Fast 50 Awards

CEF Construction Awards 2009

  • CEF Construction Awards 2009
  • CEF Construction Awards 2009
  • CEF Construction Awards 2009

CEF Construction Awards 2009

Newry Chamber of Commerce Banquet

  • Newry Chamber of Commerce Banquet. Thursday 8 October 09
  • Newry Chamber of Commerce Banquet. Thursday 8 October 09
  • Newry Chamber of Commerce Banquet. Thursday 8 October 09

Newry Chamber of Commerce Banquet

Connecting Employers to Communities

  • The Connecting Employers to Communities event hosted at Hillsborough Castle by Business in the Community on 23 September 2009.
  • The Connecting Employers to Communities event hosted at Hillsborough Castle by Business in the Community on 23 September 2009.
  • The Connecting Employers to Communities event hosted at Hillsborough Castle by Business in the Community on 23 September 2009.

Connecting Employers to Communities

Ulster Tatler Awards 2009

tatler awards.

In pictures: Doing the business

  • Innovative student Cathy wins top placement prize
Business studies student Cathy Keenan Is the winner of the Ulster Business School?s 2009 Annual Placement Innovation Awards. Cathy completed her year-long placement at Belfast City Council where she identified that the council could engage further with students to promote business start-up as a viable career alternative. Cathy organised a student enterprise fair which led to the development of an ongoing student enterprise programme and a joint business networking initiative with the University of Ulster Alumni Association
  • Martin Murphy, managing director of Hewlett Packard in Ireland joins Jimmy Stewart, director of C2k to announce that HP has been awarded a £24m contract for managed services to C2k. C2k is the public |sector body tasked with the delivery of education technology services to schools in Northern Ireland. The contract, awarded by the Western Education and Library Board, means HP?s involvement in the C2k project extends from five to seven years and covers the provision of email hosting, help desk services, video conferencing services and a virtual learning environment for school children
  • Bushmills in £2.6m stores roll-out
Bushmills has completed its £2.6m investment in new maturation warehouses, which increases the Distillery?s storage capacity by another 44,000 barrels of whiskey. 
The build is part of Diageo?s £10.5m investment in the brand since it acquired Bushmills in 2005 and follows the recent installation of its new Potstill and Mash House, as well as the unveiling of its new bottle design. 
The warehouses were unveiled by Colum Egan, Bushmills? Master Distiller, and Denis O?Connor from Patton Group, the building contractor.

Cream of the crop in the business world

NI's Top 100 Companies

Top 100 Companies

Who's up and who's down in 2009


Business Digest by Email

Sign up for your free weekly business newsletter