Industrial action that threatened to paralyse Aer Lingus operations from next Monday has been called off after the airline and trade union Siptu reached agreement at the Labour Relations Commission on a package of measures to cut costs without outsourcing.
In a statement, Aer Lingus said the framework agreed "may deliver the required cost savings".
"This framework would not involve outsourcing. However, until these savings are verified and confirmed by the union, the outsourcing plans remain on the table. In this regard, Siptu has indicated that it will be in a position to confirm the savings by December 3rd."
The deal would see staff opting to leave the company offered a severance package of nine weeks per year of service up to a maximum of 156 weeks.
Staff who opt to remain will retain their existing pay and allowances but will have to change work practices. New entrants to the airline will be employed on revised terms and conditions.
Some staff who take a redundancy package may be able to return at a later stage on lower terms and conditions. The mechanism to provide for this was unclear tonight.
There will be a 7 per cent reduction in overall numbers of personnel working in ground operations at the airline. The defined benefit pension scheme is to remain in place for existing and new employees.
The base at Shannon, which had been earmarked for closure, will remain.
The revised terms and conditions will be set out in a registered employment agreement. This will be registered with the Labour Court and be legally binding.
Aer Lingus welcomed the withdrawal of the notice of intended Industrial action by Siptu and "the removal of uncertainty for our customers intending to travel next week".
Siptu said it would consult with its members in advance of any ballot, commencing with meetings next Monday and Tuesday.
"The aim is to complete the process before December 4th. There will be no industrial action or strike action commenced during the process, but if Siptu members reject the proposal the union mandate remains live and can be activated if the company proceeds with outsourcing," the union said in a statement.
The union had served strike notice on Aer Lingus for next Monday, November 24th and said any action could include work stoppages or withdrawal of labour.
Aer Lingus insists it needs to save a total of about €74 million in costs, including about €50 million in staff costs. It had proposed outsourcing about 1,300 jobs, including ground-handling staff and cabin crew.
Talks at the LRC were going on since last weekend after the Government's main industrial relations trouble-shooter, the National Implementation Body, asked the LRC to intervene and to report on the outcome of the talks.
