The disagreement between the Dublin Airport Authority (DAA) and unions at Shannon airport over the authority's plans to cut Shannon's cost-base has been referred to the Labour Court.

This follows the breakdown of talks between the two sides on the DAA's "survival plan" for Shannon at the Labour Relations Commission (LRC).

The "survival plan" aims to cut costs by € 140 million at Shannon over the next 10 years by cutting over 200 jobs on a voluntary basis and outsourcing a wide range of functions, including exiting completely from catering.

According to a Siptu spokesman, the talks broke down at the LRC as the two sides couldn't agree a basis for talks over the issuing of outsourcing.

However, in a letter circulated to over 550 staff at Shannon airport yesterday, the Dublin Airport Authority's director for change, John Horgan, expressed his frustration with unions' engagement in the process.

Mr Horgan said that 23 meetings have been held with the unions since July of last year.

He wrote: "At the meeting with the LRC on January 26th, 2006, the unions again failed to come forward with any proposal as envisaged by the National Implementation Body and it therefore became clear to the industrial relations officer of the LRC that the talks were going nowhere. The unions had no proposal of their own and would not discuss the company's proposals. It was in these circumstances that the parties agreed to refer the entire matter to the Labour Court."

A spokesman for the DAA said that the voluntary redundancy programme has been extended pending the outcome of the talks at the Labour Court.

The completion of the process is necessary for the Shannon Airport Authority (SAA) to lodge its business plan with the Government. In response to a written Dáil question, Minister for Transport Martin Cullen said that he has not imposed any artificial deadlines on Shannon or Cork in lodging their business plans.