Aer Lingus believes Sitpu deal 'viable'

Aer Lingus believes that the deal reached with the trade union Siptu as an alternative to controversial out-sourcing proposals…

Aer Lingus believes that the deal reached with the trade union Siptu as an alternative to controversial out-sourcing proposals has proved to be financially viable.

Informed sources said tonight the airline believed that "a significant number" of ground operation staff had opted for a "leave and return" scheme under which they would receive a severance package and subsequently reapply for positions at the company on inferior terms and conditions

The success of the deal was conditional on around 50 per cent of ground operations employees, represented by Siptu, opting for the "leave and return" option.

Staff were also offered the option of leaving the company permanently under an early retirement or voluntary redundancy programme.

Those remaining on existing terms and conditions would have work under a different work practice regime.

Aer Lingus had said that if there was insufficient take-up of the various options to make the deal viable, it would revert to its controversial out-sourcing proposals.

These involved cutting around 1,300 jobs at the airline through out-sourcing, voluntary redundancy and early retirement.

However highly placed sources said last night that "all the indications were that the deal with Siptu is viable".

Aer Lingus is expected to make a formal announcement on the issue early next week following a ballot on a separate deal reached between management and the trade union Impact in relation to cabin crew.

Overall Aer Lingus is seeking to generate savings of around €50 million on its payroll costs as part of its new reform programme.

The deal with Siptu removes the threat of industrial action at the airline in the run-up to Christmas.

Martin Wall

Martin Wall

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