Siptu 'surprise' at Cullen Aer Lingus comments

The largest union at Aer Lingus has stated its "surprise" at comments made by the Minister for Transport this morning over his intention to bring proposals on the sale of the airline to Government in the next few weeks.

Siptu national industrial secretary Michael Halpenny said his union's members were "extremely surprised" to hear Martin Cullen say that he would be bringing proposals to Government in the next few weeks to "facilitate an investment transaction" in Aer Lingus.

Mr Halpenny said Mr Cullen had made an undertaking, through the Irish Congress of Trade Unions, to meet with Congress and its constituent unions ahead of any Cabinet decision on the matter.

"Most importantly, from our perspective, no meaningful engagement has taken place between the union and any party with regard to the crucial issues of job security, pensions and conditions, as promised by the Minister. We appear to be no further on in that regard than we were some weeks ago," he added.

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No meaningful engagement has taken place between the union and any party with regard to the crucial issues of job security, pensions and conditions, as promised by the Minister
Siptu national industrial secretary Michael Halpenny

Speaking at the announcement of the airline's latest route from Dublin-Dubai this morning, Mr Cullen insisted the airline needed external capital if it was to maximise its potential and the commercial flexibility that would bring.

Mr Cullen claimed the sale of Aer Lingus would result in expansion and would enable the company to strengthen its balance sheet and provide the muscle to compete in the volatile aviation industry.

"In the interests of the airline, its staff and customers not to mention the wider economic interests of this country, I want to see Aer Lingus being given the capital and the commercial freedom to realise those ambitions.

"That is why the Minister for Finance and I will be bringing proposals to Government to facilitate an investment transaction in the next number of weeks."

Mr Cullen insisted a sale was not ideologically driven but was "a pragmatic, optimal response to ensure that a strong Aer Lingus seizes the opportunities which are now at hand".

Earlier, the chief executive of Aer Lingus said he expects the national airline to be sold by the summer. Mr Dermot Mannion told RTÉ radio he expected the sale to go ahead by June.

The carrier plans to invest €2 billion in modernising and expanding its fleet over the next six years.

Earlier this month, union members voted to hold a ballot for industrial action over the privatisation plans. Siptu members are to conclude a protective ballot for industrial action on Thursday.

They also want agreement on how the airline plans to fund a pensions deficit of up to €250 million.

Mr Mannion has said he is confident the pensions issue can be solved ahead of a deal.

Éanna Ó Caollaí

Éanna Ó Caollaí

Iriseoir agus Eagarthóir Gaeilge An Irish Times. Éanna Ó Caollaí is The Irish Times' Irish Language Editor, editor of The Irish Times Student Hub, and Education Supplements editor.