08/10/2009

Aer Lingus Staff Await Jobs Briefing

Irish airline, Aer Lingus has told staff in Cork and Shannon they will be briefed later today on the "restructuring" plan that is expected to see almost 700 jobs cut.

The part state owned airline yesterday revealed plans to cut 676 jobs through voluntary redundancies by the end of 2011 due to their ongoing operating loss.

Trade unions have reacted angrily, describing the plan as "extreme and draconian".

But Aer Lingus bosses have said that if no deal is reached, the airline would be forced to close loss-making routes, sell aircraft and implement compulsory redundancies.

The airline is expected to lose up to €150 million this year and more than €100 million in 2010, as passenger numbers fall and fares contract.

Siptu said today it would consider the implications of the Aer Lingus Transformation Plan and was currently evaluating the company's statement to the stock exchange.

The unions National Industrial Secretary Gerry McCormack said: "Job cuts seem to be extreme and draconian and an over reaction to the current difficult economic climate.

"SIPTU will be calling a national meeting of its shop stewards early next week which will consider the union's response to the company’s proposals.

"These are not altogether clear and lack of detail at this stage means it is difficult to evaluate them. We will be seeking clarification from management ahead of the meeting of our shop stewards."

Meanwhile, Green Party Food Minister Trevor Sargent said he was gravely concerned at the news of the job losses.

Reacting to the news, the Dublin North TD said: "These job losses would be a severe blow to the families concerned and to the local economy.

"I understand that the airline will need to reduce its operating costs by up to €100 million to remain competitive and I hope that this can be achieved with the minimum of job losses. Let us hope that these can be achieved on a voluntary basis."

(DW/BMcC)

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