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Page last updated at 10:35 GMT, Wednesday, 24 February 2010

Aer Lingus cut plans criticised

Aer Lingus jets
The airline is looking to cut costs

Unions have criticised an Aer Lingus threat to implement 1,100 compulsory redundancies if staff fail to approve a 97m euros cost-reduction programme.

The airline announced it was seeking the savings last October.

However, since then, unions and management have been in negotiations on alternative ways of securing cost reductions.

Agreement was reached with each sector including pilots, cabin crew, ground staff and craft workers.

The proposals are currently being put to ballot with a recommendation for acceptance.

However, it is understood that management now fears that staff may not accept the proposals.

Aer Lingus Chief Executive Christoph Mueller has briefed his management team to prepare 'Plan B' to secure the required cost savings through compulsory redundancies and a significant fleet reduction.

Aer Lingus originally set a target of 18 November to reach agreement on the cost-reduction package.

Unions have strongly criticised the contingency plans for the compulsory redundancies and reductions in routes if the cost-cutting programme is not approved.

A pilot source told Irish state broadcaster RTE that the contingency proposals were a counterproductive threat, which was very stupid.



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