Aer Lingus likely to ask unions for options to €100m cost-saving plans

AER LINGUS is expected to invite trade unions to consider producing their own alternatives to the controversial €100 million …

AER LINGUS is expected to invite trade unions to consider producing their own alternatives to the controversial €100 million cost-saving plans drawn up by management at the airline.

It is understood that among the proposals which were put forward by management are the outsourcing of about 1,500 jobs at Dublin, Cork and Shannon, as well as possibly hiring cabin crew in North America to operate its transatlantic services.

Management is scheduled to outline the findings of its "root- and-branch"review of the airline's cost base to trade unions at meetings on Wednesday and Thursday next week.

However, informed sources said that while management would set out its proposals, it would also be seeking any alternatives the unions could suggest which would deliver the same level of savings.

READ SOME MORE

As part of its previous cost-saving plan, aimed at eliminating €20 million in costs, Aer Lingus management initially put forward one set of proposals but eventually made the savings through other means after considering alternatives suggested by the trade union side.

Informed sources said this model could be used again this time.

The board of the airline has not signed off on the cost-saving proposals despite considering the plan on two occasions. Some directors are believed to be unhappy with the proposals.

On Thursday, Aer Lingus management wrote to trade unions at the company inviting them to the meetings next week which will be chaired by Kevin Foley, director of conciliation at the Labour Relations Commission.

Siptu president Jack O'Connor has warned that if the reports of the widescale out-sourcing of jobs were accurate, they could "torpedo" the new national pay deal.

It is understood the union is concerned that many of its members could be influenced by any such outsourcing plan, in the forthcoming ballot on the deal.

Martin Wall

Martin Wall

Martin Wall is the former Washington Correspondent of The Irish Times. He was previously industry correspondent