Management at Shannon Airport has withdrawn a €30m voluntary severance package offered under a viability plan for the airport.
The move comes as management and unions await proposals from the National Implementation Body aimed at resolving the protracted dispute.
Unions are opposed to the viability plan because it involves outsourcing. However, management warned earlier this year that the voluntary redundancy offer would be withdrawn unless agreement was reached before this month. A spokesperson confirmed to RTE News that the offer had now been withdrawn.
SIPTU, the largest union at Shannon airport, has said it will not comment on the decision until it receives proposals from the National Implementation Body.
The Government's partnership watchdog met SIPTU representatives last week and is expected to issue proposals soon.
The viability plan, which was first proposed last year, requires 200 voluntary redundancies from a total of 550 staff. But trade unions are opposed to the plan because it involves a high level of outsourcing.
SIPTU says that up to half the staff at Shannon Airport would be replaced by outsourced labour on inferior terms and conditions.
However airport management says SIPTU has failed to engage constructively on the plan. It says outsourcing is the best way to achieve the necessary cost savings at Shannon. Outsourcing proposals would mainly affect the catering division, which provides on board meals for airlines.
The issue has remained unresolved despite protracted discussion at the Labour Relations Commission and the Labour Court and referrals to the NIB.
A management spokesperson said the Dublin Airport Authority - which has responsibility for Shannon - had already taken the decision to withdraw the voluntary severance offer at the end of September due to lack of progress on the issue.
He said management would proceed with other cost cutting measures at Shannon from this week. It is understood those measures will include reducing opening hours for bars and restaurants and not replacing seasonal staff.
