Cork Airport is to slash its workforce by 13% as part of a major plan to cut costs and reverse 12m in losses.
Management called airport staff to a meeting yesterday afternoon to tell them they are seeking 32 voluntary redundancies from the 250 workers.
It is understood the redundancies are being sought across all departments within the airport.
Director Niall MacCarthy said Cork Airport has run up cash losses since 2010 and passenger numbers have fallen significantly over the past three years.
However, operating costs at the airport are higher than in Shannon and Dublin and have contributed to the losses.
The consultant’s report by Ernst & Young recommends:
A voluntary severance programme to secure a minimum of 32 redundancies.
A full review of existing structures, rosters and staffing levels.
The alignment of remuneration and work structures with aviation industry best practices .
Renewed focus on all opportunities to reduce non-payroll costs.
Renewed focus on all opportunities to enhance revenues without impacting on the airport’s competitiveness.
“As has been the case with most businesses in Ireland, Cork Airport has suffered the impact of the ongoing economic downturn and, in our case, the consequent significant reduction in passenger numbers over the past three years,” said Mr MacCarthy said.
“Unfortunately, Cork Airport’s operating costs have not fallen in line with the decline in aviation traffic and are now also significantly higher than many of its peer airports.
“The airport’s relatively high operating costs per passenger have contributed to cumulative cash losses excluding depreciation of 12 million between 2010 and 2012. These losses will be replicated over the next three years if no action is taken.”
Airport staff will be told the terms of the redundancy package within the next week and management said they plan to enter discussions with trade union representatives as quickly as possible.
Meanwhile discussions between Aer Lingus and the Dublin Airport Authority (DAA), who operate Cork, Dublin and Shannon airports, and trade union SIPTU have broken down over the issue of workers’ pensions. SIPTU described as ‘derisory’ proposals put forward by the two companies to resolve a 750 million deficit crisis in their staff pension funds.
Talks were held to avoid a strike and there are fears industrial action could now be on the cards.