AER LINGUS and the pilots representative body Ialpa yesterday agreed to enter a process of independent arbitration in an effort to resolve their differences on the airlines latest cost-cutting package.
This followed a joint initiative by employers group Ibec and the Irish Congress of Trade Unions to try and bridge the impasse that has developed between the airline and its pilots in recent weeks and resulted in a failure to agree a deal at the Labour Relations Commission (LRC).
“The objective of this process will be to work to finalise agreement with Ialpa,” Aer Lingus said in a statement. The airline said it looked forward to a “vigorous and productive engagement, and for its part will make its best endeavours to reach an early agreement”.
Evan Cullen, Ialpa’s president, said: “We’ve always been available for talks and see no reason not to participate in this.”
It is understood that the talks will be chaired by Kieran Mulvey, who will be operating in an independent role, separate to his position as chief executive of the LRC.
The talks are expected to get under way on Monday.
Aer Lingus and its pilots have been unable to agree a deal on cost-cutting measures as part of the airline’s plan to save €97 million a year. Aer Lingus is believed to have reached agreement with Siptu, craft workers and Impact, which represents cabin crew, on a range of restructuring measures.
But it has been unable to agree a deal with Ialpa. The pilots said they have offered a package of savings worth €30 million to the airline but Aer Lingus rejected this, saying the cost of the package in redundancy terms was too high.
On Monday, Aer Lingus wrote to Minister for Enterprise Mary Coughlan to inform her of its plan to make 1,065 staff compulsorily redundant in the event of a deal not being agreed with its unions.
The airline has also warned that it will close loss-making routes and ground a number of aircraft to stem its losses, which are forecast to hit €100 million this year.
