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Company says the cuts are necessary as consumer demand wanes
Aer Lingus workers vote to strike over airline's job-cuts plan
Tuesday, November 11, 2008
Aer Lingus Group Plc workers voted to strike over the airline's plan to cut more than 1,500 jobs, the Services Industrial Professional Technical Union said. Around 80 percent of the Dublin-based airline's workers that voted were in favor of the strike, the union said an e-mailed statement. Aer Lingus plans to cut jobs, hire outside providers for ground operations and halt pay raises until at least the end of 2009 as part of a plan to save 74 million euros ($94.4 million). It says the cuts are necessary as consumer demand wanes.

"I want to stress that we remain open to enter a talks process to resolve this dispute with management," Gerry McCormack, industrial secretary at the union, said in the statement. "We will now be serving notice of industrial action immediately." Aer Lingus, which has given employees until Dec. 15 to accept buyouts, couldn't immediately be reached for comment. Aer Lingus rose 6 percent last week, valuing the carrier at 608 million euros. The stock has fallen 45 percent this year.
Tatiana Rokou - Tuesday, November 11, 2008
2 recommendation(s) , 32 print(s), 312 views, 0 comment(s)
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Poll
How do you expect luxury travel to perform in times of economic downturn?.

Providers of luxury travel products are going to witness shorter stays by their customers and an increase in seasonality.

People are going to become more value conscious and will opt for those luxury offers that represent a convincing value-for-money proposition. Providers of overpriced services are those to feel the pinch.

Both people paying for their personal trips and firms paying for their top executives' business trips will cut back on travel expenses, thus affecting all luxury travel providers.

It is going to be business as usual. Those people opting for high-end travel products are not going to be affected by the looming crisis.

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