Siptu staff at Aer Lingus back deal

SIPTU MEMBERS at Aer Lingus have voted overwhelmingly to accept a package of cost-saving measures at the airline which were drawn…

SIPTU MEMBERS at Aer Lingus have voted overwhelmingly to accept a package of cost-saving measures at the airline which were drawn up as an alternative to management plans for widespread outsourcing.

Siptu said last night that the proposals were accepted by about 80 per cent of members at the company.

The proposals accepted by the union members include a controversial "leave and return" scheme at Aer Lingus.

The proposals mean staff would take a severance package but later be re-employed at the airline on inferior terms and conditions.

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The deal would also see other personnel leaving the company on a permanent basis as part of a voluntary redundancy or early retirement programme.

Under the deal, staff who remained at the company on existing terms and conditions of employment would have to operate under a different work practice regime.

However, the deal is structured in such a way that specific numbers of staff are required to accept the different options available.

It will not be known until today how many staff have chosen, for example, to take the redundancy package or to avail of the "leave and return" scheme.

Aer Lingus has indicated if the deal is not considered to be viable as a means of generating the level of savings required, it will have to revert to its original outsourcing plan.

This would involve up to 1,300 jobs being cut at the airline through outsourcing, redundancy and early retirement.

Overall, Aer Lingus wants to reduce its payroll cost base by €50 million as a result of deals with trade unions.

The Labour Relations Commission in its report on the deal reached between management and Siptu on alternatives to the outsourcing proposals said that "the pattern of take -up of options by individuals will decide whether this proposal is viable.

Siptu said last night that the turnout in the ballot was about 80 per cent.

In a statement Siptu national industrial secretary Gerry McCormack said the union welcomed the ballot result.

Mr McCormack said the outcome of the vote was "the first step towards preventing the outsourcing of over 1,300 jobs and securing the long-term viability of Aer Lingus".

"It is now a matter for the company to evaluate the options each individual has made under the alternative cost savings plan to see if it provides a viable option.

"Staff members have until 5pm tomorrow to notify the company of their preferred options," he said.

Siptu said the company needed 7 per cent of staff in Cork and Dublin, and 35 per cent of staff in Shannon to leave the airline on a permanent basis.

The union said that Aer Lingus also required half of the remaining staff to opt for the leave and return scheme for it to achieve the cost savings necessary.

Aer Lingus has said that if the alternative plan agreed with Siptu at the Labour Relations Commission was not viable it would revert to its original proposal to cut about 1,300 jobs through out-sourcing, voluntary redundancy or retirement.

Martin Wall

Martin Wall

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