Aer Lingus has set a deadline of 1 December for the implementation of a €74m cost-cutting programme involving up to 1,500 job cuts through redundancies and outsourcing.
At a 2.5 hour meeting this afternoon, management told staff that €50m would have to be eliminated from staff costs, €14m from a reduction in advertising and distribution costs, airport costs and professional fees, and €10m by reducing its long haul aircraft fleet from nine to eight.
SIPTU workers at Aer Lingus have said they would ballot for all-out industrial action following the airline's proposal.
The decision was taken at a meeting of shop stewards this evening.
However, a spokesperson said that the union would be engaging in the consultation process with management chaired by the Director of Conciliation at the Labour Relations Commission, Kevin Foley.
The Aer Lingus plans are far-reaching.
The airline said its plan includes a voluntary severance or early retirement package on the same terms as in 2004 for cabin crew and ground staff in airports, catering and cargo divisions.
Sick pay entitlements are to be reduced.
Contracts based on performance-related pay will be introduced from January.
Staff who do not take redundancy may transfer to a new service provider, but there will be no opportunity to redeploy within the airline.
In Shannon, the cabin crew base will close entirely. Aer Lingus said between 250 and 280 jobs will be lost in Shannon.
Ground operations including check-in, boarding and baggage handlers will be outsourced to other companies.
However, Aer Lingus will retain a hangar and a maintenance operation in Shannon.
A cabin crew base at Heathrow will also be closed.
Staff may be offered redeployment to Dublin or Cork or alternatively will face redundancy.
Services from New York, Boston and San Francisco will be staffed with US-based cabin crew from the summer of next year.
The company will commence a programme to move its head office to smaller, open-plan facilities.
Aer Lingus has already reported losses of €22m for this year, and is forecasting potential losses of over €100m next year - depending on the cost of fuel.
Last Friday, the Aer Lingus board finally authorised management to proceed with what it described as a cost reduction programme to deliver substantial savings necessary to ensure the company's long-term viaibility as an independent airline.
The company also stressed that the cost savings must be delivered as a matter of urgency.
IMPACT trade union said after the meeting that it regards the proposals as draconian and severe.
