AER LINGUS moved a step closer to possible industrial action yesterday when it established a “task force” to “begin the process of planning compulsory redundancies and fleet reduction”. Talks with the company’s unions remained deadlocked last night with a slim hope of a breakthrough.
The task force is to be headed by Michael Greally, the loss-making airline’s head of human resources, and Steven Kavanagh, the executive in charge of its long-haul operations.
It is understood that Aer Lingus plans to issue compulsory redundancy notices to staff next week if there is no last-minute deal.
The airline is expected to send a letter today to Minister for Enterprise 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.
Chief executive Christoph Mueller has indicated that it will seek “north of 1,000” redundancies as it grounds aircraft and closes loss-making routes following a failure to reach a deal with staff on a range of radical cost-cutting measures.
The board of Aer Lingus will meet today to consider the alternative rationalisation proposals. In the absence of a deal, the board is expected to give the green light to management’s plans to significantly pare back Aer Lingus’s services and return the company to profitability. 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.
Aer Lingus’s statement was issued late in the afternoon yesterday and angered union representatives who were still negotiating with the company at the Labour Relations Commission (LRC). Aer Lingus said that despite “exhaustive negotiations with all union groups, the company is no closer to an acceptable deal. “The company has reached the final hours of negotiations and its evaluation is that, as of today, it is too far from bridging the gap with the demands of pilots and cabin crew.”
Enda Corneille, Aer Lingus’s corporate affairs director, said the airline issued the statement in spite of talks continuing at the LRC as it had “come to the conclusion” that agreement would not be reached.
One union source said this move made talks even tougher. “It’s made a hard situation even more difficult,” the source said.
Aer Lingus is seeking €97 million in cost savings. Of this, about €75 million relates to pay.
The company remains at loggerheads with its cabin crew and pilots. It is thought to want more than €20 million in savings from cabin crew while the pilots have tabled a package of savings amounting to €35 million.
The pilots are planning to hold a meeting at the Alsaa sports grounds beside the airport this afternoon. Aer Lingus, meanwhile, is believed to have drawn up contingency plans in the event of industrial action taking place.
It is understood that the airline hopes to continue operating from its Belfast and Gatwick bases, where staff are operating on different terms and conditions.
