07 October 2008

Aer Lingus to cut up to 1,500 jobs

Up to 1,500 jobs are set to go at Aer Lingus as part of a Ã¢'š~¬74 million cost cutting programme.

The jobs will be cut through redundancy, early retirement and outsourcing with a deadline of November 1.

According to reports in the Irish Times, the company is looking to outsource all of its ground operations, catering and cargo services and make radical changes to the way it hires cabin crew.

Staff will be offered the opportunity to move to the outsourced providers, under the same terms as their current jobs, or take redundancy.

For cabin crew, Aer Lingus plans to close down its bases in London Heathrow and Shannon, giving staff the chance to relocate to Dublin or Cork.

For its transatlantic flights, the airline wants to employ cabin crew in the US on new terms and conditions, which are believed to include being paid by the flight hour and shorter holiday entitlements.

The airline also wants to implement a pay freeze until the end of 2009 for all remaining staff, and sick pay entitlements are being reduced.

Trade union SIPTU, which represents about 1,700 staff at the airline, said it will co-operate with Aer Lingus and the Labour Relations Commission to try to find alternatives, but it will also ballot for industrial action.

Aer Lingus said the cost-cutting programme was necessary to ensure the long-term independence of the airline.

The company is forecasting potential losses of over Ã¢'š~¬100 million next year, depending on the cost of fuel.