More trouble brewing in the Shannon region, this time there is a ballot by SIPTU as to accept management plans to axe 200 jobs to secure the future of the Co. Clare airport. A verdict is expected by next Thursday (29th March 2007). Part of the ballot focuses on the redundancy plans, previously workers refused the 10-week per year of service plan, which was capped at 2.5 years salary pay out. Now this cap has been raised to 3 years.
The lump sum for remaining employees has been increased from €10,000 to €16,000, which is payable in two sums. One of the strategies for Shannon airport to reduce numbers is the planned outsourcing of the catering facilities, and to redeploy the staff to other departments.
With the new plan the airport plans to save, €10m a year, although it will be at least 4 years before the benefit will be noticed as the predicted cost of the redundancies and other premiums is in the region of €36m.