Management and unions have reached provisional agreement on a revised cost-cutting plan for Shannon Airport in Co Clare.
The deal was struck at talks convened by the Labour Relations Commission (LRC) at an airport hotel last night.
Unions at the airport overwhelmingly rejected a €35 million "survival plan" for Shannon in January. The plan involved the voluntary redundancy of 200 out of the airport's 550 workers, the Shannon Airport Authority (SAA) completing exiting from catering, the outsourcing of a number of sectors.
Under the deal brokered last night, staff taking redundancy will be offered improved settlement payments. The proposals will now go to a vote among union members.
Elements of an improved deal workers emerged during marathon LRC talks under the chairmanship of LRC chief executive, Kieran Mulvey at the airport last week.
The deal was welcomed by a statement issued on behalf Shannon Airport and the Dublin Airport Authority (DAA).
"On the basis that this agreement delivers the €10 million in annual cost savings required, and that it has the full support of the LRC, the trade unions and management, we welcome it as a significant first step towards ensuring Shannon Airport's financial viability and safeguarding its role as a key economic generator for the West of Ireland," said Pat Shanahan, Executive Chairman at the airport.
"Shannon Airport faces many business challenges including the advent of Open Skies and growing competition from other airports. But if this agreement is approved by staff, we can establish the cost base and flexibility that will enable Shannon to compete successfully and secure a vibrant future for the airport, its customers and staff," he added.
Progressive Democrat Senator Tom Morrissey today welcomed the provisional agreement. "If this agreement is accepted by the unions and workers of Shannon Airport it will underpin the future viability of the airport," he said.
"The challenge now is to implement the plan quickly. We must move without further delay to complete the separation of Shannon Airport from Dublin Airport as was envisioned by the 2004 States Airport Act," he added.
The deadline for the conclusion of the current round of talks was on Friday when the first round of lay-offs was due to begin amongst the airport's 90 temporary staff.
Twenty-three staff were due to lose their jobs in the first phase on Friday and the SAA had also told a second group of temporary workers that they will lose their jobs next month.
Sitpu workers at Shannon had worked overwhelmingly for industrial action with 224 of the 267 staff who balloted voting in favour of industrial action if the SAA proceeded with the lay-offs.