Unions at Aer Lingus look set to press for pay increases of between 10 and 15 per cent for staff who remain at the airline after the restructuring plan is completed, writes Emmet Oliver.

At a meeting with Aer Lingus managing director, Mr Willie Walsh, yesterday, unions emphasised to him that a substantial pay claim is likely to be advanced at some stage in the short to medium term.

Last night unions sources were reluctant to publicly comment on the scale of the claim, but sources estimated it would be somewhere between 10 and 15 per cent across the board. The issue of an enhanced shareholding in the company was not raised at the meeting.

A spokeswoman for the airline said "market rates" would apply after the restructuring. The company declined to comment on specific figures but said it would continue to engage with unions on the issues involved.

Some of the most robust exchanges at the meeting concerned the subject of compulsory redundancies. Members of IMPACT in particular wanted Mr Walsh to give a guarantee there would be no compulsory redundancies.

However Mr Walsh told the union side he would not rule anything in or out, although he said his preference was for voluntary arrangements. The company is seeking 1,325 redundancies, with some staff reductions to take place as early as January 2005.

Mr Walsh was accompanied at the meeting by the director of human resources, Ms Liz White. The two sides will meet again shortly.

A SIPTU spokesman last night said it was too early to talk about figures in relation to any potential pay claim. He said the union remained opposed to compulsory redundancies of any kind.

SIPTU has balloted for potential industrial action and results will be available on August 17th. The spokesman said the union had no fears about implementing the results of the ballot if needed.

Mr Michael Landers, assistant general secretary of IMPACT, said his union remained implacably opposed to any compulsory redundancies.

But he stressed the union was prepared to engage with Mr Walsh, even though they did not agree with his "eventual destination". Aer Lingus management is determined to implement the plan even though the company's financial results remain on target.

Mr Walsh has stressed that falling air fares and rising fuel costs are some of the factors that make the job cuts necessary.

Aer Lingus expects to report operating profits of about €95 million by the end of the year.