Mandate votes for DAA deal

Members of the Mandate union have voted overwhelmingly in favour of a €40 million cost-reduction programme at the Dublin Airport…

Members of the Mandate union have voted overwhelmingly in favour of a €40 million cost-reduction programme at the Dublin Airport Authority.

The deal, which was backed by 92 per cent of workers in a ballot, will see 275 permanent jobs and 100 temporary positions go over the three airports run by the DAA.

Under the deal, agreed at the Labour Relations Commission, workers will get a severance package equivalent to 6.75 weeks’ pay per year of service.

The programme, which was passed by Sitpu staff last week, also includes a pay freeze until 2011.

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The plan will also lead to the introduction of a novel Employee Recovery Investment Contribution scheme with staff facing pay reductions of on average 5.5 per cent with effect from February. Under the scheme, employees will invest a percentage of their earnings and will recoup the monies after three years or when the company is restored to profitability.

The DAA said last July it was facing a €70 million earnings shortfall due to significant falls in passenger traffic and commercial income. The State-owned airport manager also said it expected “minimal passenger growth” up to 2011.