Extension to airline package agreed

An extension to the closing date for those wishing to apply for voluntary redundancy at Aer Lingus has been agreed.

The deadline has been put back from September 14th to October 15th, a spokeswoman for the airline said yesterday.

The new deadline has emerged from talks under way between unions and management with facilitator Mr Kevin Foley, the deputy chairman of the Labour Court.

The talks, which began this week, are aimed at finding agreement between the two sides over the company's new business plan, which includes a provision for 1,325 redundancies.

The talks involving Mr Foley are aiming for an agreement by October 15th. It is understood SIPTU has agreed it will not take any industrial action while the talks are ongoing. If there is a change in this position it is to notify Mr Foley.

The airline has offered nine weeks pay per year of service as part of a redundancy package set to cost an estimated €80 million. It is understood that some 360 Aer Lingus workers have signed up for the redundancy package, so far. About 1,000 staff have contacted the company's helpline to seek information.

The unions have argued that the package is not as attractive as it headline figures indicate. Unions also question the need to cut a third of the jobs at the airline at a time when it is highly profitable.

The plan to outsource activities such as baggage-handling is another key union concern.

Management at the airline believes that with ticket prices falling sharply and low-cost carriers increasing their share of the market, Aer Lingus has to radically cut its costs.