AER LINGUS management has told trade unions that if they are unhappy with the package of cost-cutting measures put forward yesterday they should draw up their own alternatives to generate the same level of savings.
The company has signalled it is not prepared to engage in a lengthy process of negotiations and that it wants any alternative proposals quickly. The airline indicated that it intended to implement its plan unilaterally if no agreement was reached.
The proposals, outlined yesterday by chief executive Dermot Mannion, including up to 1,500 job cuts through outsourcing and redeployment, could now cast a shadow not only over the industrial relations climate at the airline but also over the proposed new national pay deal.
Siptu said its members were furious at the proposals. The union, which represents about 1,700 staff at the airline, will co-operate with a process involving the Labour Relations Commission aimed at producing alternatives. However, it is also to ballot for all-out industrial action.
Siptu is also concerned that the proposals could influence members when they come to vote later this month on the proposed new national pay deal.
Aer Lingus wants to cuts its staffing costs by €50 million under the new plan. In addition, it intends to save €14 million through cuts in its advertising and distribution costs, as well as reductions in professional fee payments and airport charges. It also aims to save a further €10 million by reducing its number of long-haul aircraft from nine to eight.
In effect, the company is seeking to eliminate virtually its entire in-house ground operations (such as check-in and baggage handling), catering and cargo services and introduce radical changes to its cabin crew arrangements.
Under the proposals, all ground operations in Dublin as well as the cargo and catering services would be outsourced. Similarly ground operation services in Cork and ground operations and cargo services in Shannon would be given over to outside companies.
Staff would be offered the choice of either moving to the new providers under a transfer of undertakings arrangement - by which they would retain their existing pay and conditions but not their current pension arrangements and travel concessions - or to take a redundancy package.
Staff opting for the redundancy package could seek employment with the new service provider but only on new terms and conditions.
The 1,000-plus staff currently employed as ground staff would not be allowed to redeploy elsewhere in the airline.
For cabin crew, Aer Lingus plans to close down its bases in Shannon and Heathrow in London. These staff will be offered an opportunity to transfer to Dublin or Cork.
The airline wants to employ new cabin crew in the United States on revised terms and conditions to operate its transatlantic services. It is understood that cabin crew in the US are paid per flight hour rather than a standard salary and have shorter holiday arrangements.
The voluntary redundancy programme to be offered would be on the same terms as a previous scheme in 2004. This involved options of a cash sum - about €40,000 for those leaving, a payment of nine weeks' salary for each year of service up to a maximum of 145 weeks, or a special early retirement package for those close to retirement age.
The airline plans to implement a pay freeze until the end of 2009 for all staff who remain. This means that it would not be paying the two phases set out in the proposed new national pay deal.
