SIPTU accepts DAA cost recovery programme
Ireland's Dublin Airport Authority (DAA) announced (26-Jan-2010) SIPTU staff members voted two to one to support the Cost Recovery Programme (CRP), after discussions with the union. The programme was agreed after it emerged last year that the DAA was facing losses of EUR55 million, a figure that has since risen to more than EUR70 million. The programme is expected to save the authority EUR300 million (Ireland Business World, 26-Jan-2010).
- Job cuts and pay freeze: 275 permanent and 100 temporary jobs at Dublin, Cork and Shannon airports to be cut, with a pay freeze until 2011;
- Employee Recovery Investment Contribution (ERIC) scheme: employees will invest a percentage of their earnings and will recoup the funds after three years or when the company is restored to profitability, with effect from 01-Feb-2010;
- Voluntary Severance Scheme: to be established while the Union enters discussions with the company on the pay, terms and conditions which will apply to new staff recruited by the DAA. EUR1 million one-off fund to be established, to be paid out to participating staff if the agreed cost recovery target is met;
- Internal Disputes Tribunal: to comprise of one senior trade union official, one senior manager and an independent chairperson to adjudicate on any disputes between the parties regarding the proposals. [more]