The business representative group IBEC has expressed concerns about the redundancy package offered to Aer Lingus workers, fearing that it might become a benchmark for future offers. Colm Keena reports.

The deal is at the top end of the range of deals offered in recent times.

However, the offer of nine weeks' pay per year of service is not unique, according to the State's largest union, SIPTU. It says the package is similar to the one offered to workers when Eircom was being privatised. That package also involved nine weeks' pay per year of service.

When comparing redundancy packages, key issues include the caps on the monetary amount or total number of years of service which can form part of the deal.

In May last year, statutory redundancy was increased to two weeks' pay per year of service. Prior to that it had been half a week per year of service for people younger than 41, and one week per year of service for people above that age.

A review of severance settlements for the January-June 2004 period published recently by Industrial Relations News shows that the Aer Lingus offer is significantly ahead of the norm.

It found that in the Irish clothing sector, where a number of major firms had closed during the period, severance settlements were reasonably high, at four to five weeks' pay per year of service, inclusive of statutory provisions.

Settlements in the engineering and food sectors tended to be between five and six weeks' pay per year of service, inclusive of statutory provisions. Irish Distillers offered six weeks plus statutory, while United Beverages offered five weeks plus statutory, according to the publication.

Settlements in the electronic and IT sector were in the six weeks per year of service range.