THE AER Lingus board conceded yesterday that it is prepared to accept unions’ alternative plans for cutbacks for cabin crew but said it has made no progress with pilots’ representatives.
The loss-making airline is seeking to knock €74 million off staff costs and a further €23 million in other savings.
It is seeking 676 voluntary redundancies, but its management indicated earlier this week that it may axe up to 1,000 jobs if it could not get agreement with unions and opted for compulsory redundancies and route closures instead of a negotiated deal.
Following a board meeting yesterday, the company said it had made progress with the unions representing cabin crew, Impact and Siptu, but said difficulties remained with pilots.
While it is understood that the company is likely to accept proposals from Impact and Siptu, no deal is possible until all unions are on board.
If Aer Lingus cannot complete a deal, it will begin to issue compulsory redundancy notices next week.
Talks on Thursday between the company and Impact ended at 1.30am yesterday at the Labour Relations Commission, but negotiations with the Irish Airline Pilots Association (Ialpa) failed to bridge the gap between the two sides.
These talks are expected to resume on Monday, and there are no plans for formal or informal contacts between Ialpa and the company over the weekend.
As the deadlock with its unions dragged on earlier this week, the airline established a task force to consider the possibilities of compulsory redundancies and fleet reduction.
The airline was expected to send a letter yesterday to Minister for Enterprise, Trade and Employment Mary Coughlan outlining its plans for compulsory redundancies.
The Government holds a 25 per cent stake in Aer Lingus and has three representatives on its board.
Aer Lingus head of human resources Michael Greally and Steven Kavanagh, the executive in charge of its long-haul operations, were appointed to lead the task force.
Aer Lingus chief executive Christoph Mueller has indicated that the company will seek “north of 1,000” redundancies as it grounds aircraft and closes loss-making routes if there is a failure to reach a deal with staff on a range of radical cost-cutting measures.
The airline is thought to be planning to ground two long-haul aircraft and up to six short-haul aircraft.
Routes out of the Republic are expected to be affected but its bases in Belfast and Gatwick, which are both relatively new, could survive a cull.
Talks between the company and Ialpa originally broke down earlier this week when the company proposed that the pilots take on the entire €100 million shortfall in their pension scheme themselves.
Ialpa offered €35 million in savings to the company, which included a 10 per cent pay cut, voluntary redundancies and productivity increases.
The pay cut was tied to the debt of the pilots’ Tailwind Trust, which spent €30 million buying Aer Lingus shares to fend off bids by rival Ryanair, being wiped out.
The company disputed the savings that some of the measures proposed by the pilots would generate.
