Deal ends industrial action at Shannon Airport

Passengers can expect full services at Shannon Airport after bosses and trade union leaders hammered out a deal on cutbacks, the Government said today.

Minister for Labour Tony Killeen signalled his belief that bars, shops and restaurants affected during the ongoing industrial dispute would re-open if the breakthrough is secured.

Airport chiefs shut down a number of facilities as part of cost-cutting measures in the absence of any agreement over job losses.

Unions and management struck an agreement expected to result in 200 lay-offs and pave the way to the airport's independence from Dublin Airport Authority.

The deal which would see the airport save €10m a year has to be put to union members who will vote on whether to accept it or not.

"The reaching of a provisional agreement between managers and unions at Shannon Airport on a revised cost-cutting plan is a major breakthrough for everyone involved, as well as the passengers using the airport," said Minister Killeen.

"I would ask all workers to carefully consider the deal that has been presented to them and I look forward to a favourable outcome for all parties involved."

Minister Killeen said acceptance of the deal would see Shannon moving one step closer to becoming an independent airport.

"I believe that a strong independent Shannon Airport will be well placed to win a significant share of new passengers and services that will become available when up to 20 additional US gateways are open to business to Shannon", he said.

Pat Shanahan, executive chairman, Shannon Airport, said the agreement paved the way towards ensuring the airport's financial viability.

"Shannon Airport faces many business challenges including the advent of Open Skies and growing competition from other airports," he said.

"But if this agreement is approved by staff, we can establish the cost base and flexibility that will enable Shannon to complete successfully and secure a vibrant future for the airport, its customers and staff."