SHANNON Airport have written to staff today, informing them that workers will face significant pay cuts, while a voluntary severance scheme is also being introduced.
Other cost saving measures will include career breaks, reduced working hours, temporary lay offs, a review of the management structure and internal operational structures.
In a letter to staff, Chief Executive Mary Considine said that Covid-19 has had a “catastrophic impact” on aviation and tourism. “The outlook for this year, and beyond, is stark and the scale of the challenge we are facing is unprecedented,” she warned.
While a number of cost saving measures have already been introduced, she said these “are not enough to bring the airport to anywhere close to breakeven in the medium term. What is required are further and more substantial reductions to our cost base. We need to reduce the number of people employed at the airport, to improve the operational flexibility to enable us to respond more efficiently to the reduced level of passengers and temporarily reduce pay to assist us in our recovery.”
Regarding the voluntary severance scheme, she said its terms would be statutory entitlements with an additional ex gratia payment of four weeks pay per year of service. The total sum payable will be capped at 104 weeks pay. However for those aged 60 or over, the payment will be capped at whichever is the lower figure of two years pay, or half of the remaining pay until retirement.
Regarding short time working and temporary layoffs, the letter says, “Many of our employees are working reduced hours and some are on enforced temporary layoff. Unfortunately, the business cannot provide the usual level of working hours for some roles and we will need to continue this programme of temporary layoffs and reduced hours until the business recovers. We will continue to engage with employees and trade union representatives as business levels change, and we are calling on Government to retain the Temporary Wage Subsidy Scheme to support employment for as long as possible.”
On pay, it states, “SAA will implement a 20% reduction for all employees earning more than €30,000 per annum (without a reduction in hours). Reductions will not reduce earnings to less than €30,000 for employees earning more than this amount. We anticipate that this payroll reduction will be temporary in nature, will take effect from September 1, 2020 and will continue until April 1, 2023, subject to business recovery.”