The Dublin Airport Authority has warned staff that it will not have enough cash to run the business and pay current levels of salaries and benefits if its potential financial shortfall of up to €70m is not addressed immediately.
In a letter to the 3,600 staff, chief executive Declan Collier outlines a €55m package of savings including 400 redundancies, a pay freeze, career breaks and reduced hours for certain staff, and the negotiation of new terms and conditions.
Union representatives said that the priority would be to save jobs, but that pay cuts were not on the agenda.
According to the DAA chief executive, the future viability of the company is at stake - and both costs and spending must be cut. Mr Collier says the DAA has identified €55m in savings. Staff numbers will be cut through the combination of a severance scheme and the non-renewal of contract positions.
Mr Collier warns that without immediate action, the DAA will be forced to introduce severe pay cuts - with an even greater impact on overall employment levels.
SIPTU's Barry Nevin - who is a DAA worker director - accused the company of bypassing unions and of having a pre-determined plan.
IMPACT assistant general secretary Michael Landers said IMPACT would be totally opposed to pay cuts, which were not necessary.
The assistant general secretary of Mandate, Linda Tanham, said the priority was job protection - but warned the company against railroading staff terms and conditions.
