AER LINGUS believes that the deal reached with union Siptu as an alternative to controversial out-sourcing proposals has proved successful after enough staff opted for a severance package before yesterday's 5pm deadline.
Sources said last night that the airline believed that "a significant number" of ground operation staff had opted for a leave-and-return scheme, under which they would receive a severance package and subsequently reapply for positions at the company on inferior terms and conditions.
The success of the deal was conditional on about 50 per cent of ground operations employees, represented by Siptu, opting for the leave-and-return option.
Staff were also offered the option of leaving the company permanently under an early retirement or voluntary redundancy programme.
Those remaining on existing terms and conditions would have to work under a different work practice regime.
Aer Lingus had said that if there was insufficient take-up of the various options to make the deal financially viable, it would revert to its controversial outsourcing proposals. These involved cutting aound 1,300 jobs at the airline through outsourcing, voluntary redundancy and early retirement.
However, highly placed sources said last night that "all the indications were that the deal with Siptu is viable".
Earlier this week Siptu said the company needed 7 per cent of staff in Cork and Dublin, and 35 per cent of staff in Shannon to leave the airline permanently.
The union said that Aer Lingus also required half of the remaining staff to opt for the leave-and-return scheme for it to achieve the cost savings necessary.
Aer Lingus is expected to make a formal announcement on the issue early next week following a ballot on a separate deal reached between management and the union Impact in relation to cabin crew.
Overall Aer Lingus is seeking to generate savings of about €50 million on its payroll costs as part of its new reform programme.
Tuesday's deal with Siptu removed the threat of industrial action at the airline in the run-up to Christmas. Siptu members at the airline had voted overwhelmingly in favour of industrial action, up to and including full strike action, in the event of the company pressing ahead with the outsourcing plan on a unilateral basis.
The deal reached between management and Siptu was brokered following talks at the Labour Relations Commission.
