Shannon workers back survival plan

Workers at Shannon airport have backed a €36 million survival plan that will see 200 jobs cut and the outsourcing of some parts…

Workers at Shannon airport have backed a €36 million survival plan that will see 200 jobs cut and the outsourcing of some parts of the airport's operations.

Some 550 employees, the majority represented by the union Siptu, agreed the plan today. Members of the Impact and TEEU unions also voted by a majority in favour of the restructuring.

Under the deal, 200 people will take voluntary redundancy. The remaining staff will receive a payment of €16,000, at a total cost of €5.6 million to the Shannon Airport Authority (SAA).

The authority hopes to save about €10 million with the implementation of the plan, but the deal will fall if it cannot get the required 200 redundancies. In January, the airport workers rejected another survival plan.

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SAA executive chairman Pat Shanahan welcomed the unions' acceptance of the plan. He said its implementation was vital if the airport was to meet the challenges of the Open Skies policy and intense competition from other airports.

Clare County Development Board said the ballot was "a defining moment for the future of the local airport".

Acknowledging the loss of 200 jobs under the restructuring plans, Patricia McCarthy, chair of the board, said she was confident the jobs would be compensated for by the new service providers at the airport.

"The airport is a critical part of the infrastructure, not alone of County Clare but the entire west coast of Ireland, as well as being an engine for its development," she said.

Tom Coughlan, director of Clare County Development Board said the board looked forward to working with the airport authority to promote Shannon as a key location for tourists and business people from all over the world.

Shannon handled some 3.6 million passengers last year, including 280,000 US soldiers.