Aer Lingus talks to resume at LRC today

TALKS AIMED at averting a threatened dispute at Aer Lingus in the run-up to Christmas will resume today at the Labour Relations…

TALKS AIMED at averting a threatened dispute at Aer Lingus in the run-up to Christmas will resume today at the Labour Relations Commission (LRC).

The union Siptu has put forward alternative measures to those proposed by management at the airline in a bid to generate payroll savings of €50 million.

It is understood one part of the proposals would involve the company effectively buying out existing terms and conditions of staff, who would remain with the company.

A Siptu spokesman last night declined to comment on the union's proposals, but said it was looking at alternatives to outsourcing.

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Under the Aer Lingus proposals about 1,300 jobs will 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 commence either limited industrial action, such as work stoppages, or a full-scale strike with could include pickets.

It is understood that Aer Lingus management has been evaluating the alternative proposals put forward by Siptu over the weekend.

Both parties are expected to attend further meetings with representatives of the LRC today.

The commission is scheduled to report back today on any progress in the process to the National Implementation Body (NIB) - the main trouble-shooting mechanism under social partnership.

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 today 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."

Martin Wall

Martin Wall

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