AER LINGUS has told Enterprise, Trade and Employment Minister Mary Coughlan it will seek 1,065 compulsory redundancies if it fails to reach agreement on its €97 million cost-cutting plan with its trade unions.
A letter from Aer Lingus human resources director Michael Grealy, dated December 7th, which has been seen by The Irish Times, outlines to the Minister the airline's "proposed collective redundancies" on a "compulsory basis".
Aer Lingus said 590 staff would be cut from its ground service operations in Dublin, Cork and Shannon airports from a total of 2,000 employees in this area.
Ground services comprises management, operatives and clerical, and maintenance and specialists staff.
Aer Lingus will seek 336 redundancies from cabin crew at these locations from a total of 1,400.
The airline also plans to cut 139 pilots from 520 based in Dublin and Cork.
Aer Lingus said the redundancies would be implemented between January 1st next year and the end of March 2011.
“In the case of Dublin, Cork and Shannon airport, Aer Lingus is forecasting significant losses for 2009 and beyond,” the letter from Mr Grealy states.
He said it was “critical” for Aer Lingus to “immediately take steps to radically change” its staff costs base to align it with other airlines. “It has not been possible to achieve the necessary savings by agreement, hence the need for compulsory redundancies,” Mr Grealy’s letter added.
Aer Lingus has been in consultation with its trade unions – Siptu, Impact, pilots’ body Ialpa and the Craft Group of Trade Unions – since October 7th.
Ialpa said yesterday that talks between pilots and Aer Lingus broke down last night without agreement.
The pilots’ representative body said Aer Lingus had rejected a cost-reduction package proposed by the pilots which would have amounted to €33 million a year.
Ialpa said this involved pay cuts, pay freezes and a substantial reduction in pilot numbers.
Aer Lingus disputed this. “While some progress was made, the level of savings offered by Ialpa fell significantly below what was required by the company,” the airline said.
“Much of the savings came from reductions in pilot numbers at the very top of the scales. However, the level of pay cuts/pay freezes proposed from those who will stay with the company were insufficient.
“Other employees recognise the financial position of the company and are prepared to act accordingly, Ialpa are not.”
Enda Corneille, Aer Lingus’s corporate affairs director, said agreement had been reached with Impact, which represents cabin crew, Siptu and the craft union.
“There is simply no movement from the pilots,” Mr Corneille added.
Evan Cullen, Ialpa’s president, rejected this and said the union remained open to negotiation. “We are always available for talks subject to our roster duties,” he said.
