Management and unions still on opposite sides of the fence

Even after months of talking about a rescue package and a possible sale, TEAM Aer Lingus management and trade unions still differ…

Even after months of talking about a rescue package and a possible sale, TEAM Aer Lingus management and trade unions still differ radically on the future of the aircraft maintenance company.

Management insists that the only way forward is for TEAM to become part of a larger aircraft maintenance company, such as Danish group, FLS, which is interested in purchasing it.

However employees have voted not to accept a £54.6 million package to "transfer" them from Aer Lingus employment and many argue that TEAM's future lies within the Aer Lingus group. The management has outlined its case to the Minister, Ms O'Rourke. Today, the trade unions have their chance.

The Minister is likely to do more listening than talking, but, as the shareholder, she must ultimately decide whether to sell TEAM.

READ SOME MORE

One way forward would be for the Government and Aer Lingus management to try to persuade a majority of TEAM employees that it is in their best interests to accept the FLS offer.

Management sources believe that some of the reasons for a No vote were uncertainty about pensions and security of employment under FLS ownership issues which can be addressed.

However, the line with which the trade unions are entering the meeting today suggests that the differences are more fundamental.

Management flatly rejects the union view that TEAM can prosper within Aer Lingus.

It argues that the only future for TEAM Aer Lingus rests within a large international conglomerate, in an era when the industry is consolidating rapidly and airline customers are seeking big companies able to offer a cost-effective and full maintenance service. Internationally, it argues, TEAM is a minnow in an industry which is rapidly moving under the control of a half dozen large multinational concerns.

Even in last year's strong market conditions, TEAM Aer Lingus lost £1.5 million and has cost Aer Lingus £100 million since it was founded in 1991.

This suggests that its cost base is still too high and that, if the industry turns down again, it could plunge heavily into the red.

Substantial investment in TEAM could increase its efficiency, but Aer Lingus cannot afford to spend the necessary money and even if it could, management argues, the company would still lack a necessary link to a large international player.

Cliff Taylor

Cliff Taylor

Cliff Taylor is an Irish Times writer and Managing Editor