TALKS AIMED at averting a threatened dispute at Aer Lingus in the run-up to Christmas adjourned last night at the Labour Relations Commission and were due to recommence today.
Aer Lingus has been considering proposals put forward by the trade union Siptu as alternatives to management plans to save €50 million in payroll costs by outsourcing baggage handling and other services.
Siptu has declined to comment on the measures it has put forward other than saying that they represented alternatives to out-sourcing. However, it is understood one part of the proposals would involve the company effectively buying out existing terms and conditions of some staff, who would continue working for the company under inferior terms.
Informed sources said that much of the day had been spent with the parties involved in "number crunching" to determine whether the Siptu proposals would generate similar levels of savings as the management plan.
The Labour Relations Commission was last night scheduled to brief the National Implement Body - the main trouble-shooting mechanism under social partnership - on the progress of the current process over recent days.
Under the Aer Lingus proposals about 1,300 jobs at the airline would go through outsourcing, redundancy and early retirement.
The airline is seeking to effectively end its "in-house" ground operations, close cabin-crew bases in Shannon and Heathrow, and use US crews on some transatlantic routes.
Siptu has served notice for strike action on Aer Lingus. This is to come into effect from next Monday, November 24th. The union has indicated that from that date it could begin either limited industrial action, such as work stoppages, or a full-scale strike that could include pickets.
Last week the airline said it had indicated to its representatives in the NIB that it would fully co-operate "with the proposed framework to bring matters to a conclusion".
However, it said it was imperative that by the end of this exploratory process that it could confirm that the cost-savings associated with this plan would "deliver the required proportion of the total €50 million staff cost savings necessary, and that the plan is feasible".
"We will lose in the region of €20 million this year, and face further losses next year.
"We must address the work practices, pay rates and pay inflation that are simply not sustainable in the competitive environment we operate in.
"In conclusion, the company can confirm in good faith our willingness to listen to alternative solutions, but we must emphasise the overall deadline of November 30th, 2008, for implementation of an alternative solution, without which we will proceed with the original plans to outsource the ground operations functions of the airline and set up US bases if no alternative is agreed."
