Siptu to outline objections to Aer Lingus sale

A Siptu delegation will today warn the Taoiseach that privatising Aer Lingus would be a major strategic mistake.

Union representatives will hand Bertie Ahern a letter outlining their objections to the proposed Government sell-off of a majority share-holding in the airline during the Fianna Fail parliamentary party meeting in Cavan this afternoon.

The Government announced plans in May to sell a majority stake in Aer Lingus, while retaining a "golden share" of at least 25 per cent.

Siptu described this decision as a triumph for the "free marketeers in the Cabinet", and as a "victory for ideology over common sense".

The union began a campaign in July of lobbying TDs, Senators and county councillors against the proposed sell-off, warning it would be a repeat of the Eircom "privatisation debacle".

Siptu's Aer Lingus Branch Secretary Christy McQuillan said the union was also concerned at the industrial relations atmosphere at the airline in the wake of the controversy over a document outlining airline management's suggestions to get rid of staff.

Mr McQuillan called on the Taoiseach to "seriously examine" Ictu's proposal that the Government stake in the commercial State companies be transferred into a new State Holding Company. This company could raise equity for State enterprises while retaining them in public ownership, Ictu argues.

"Such a proposal needs to be considered in the context of social partnership which would mean that Aer Lingus remains in public ownership and control and still has access to the capital it needs for development and fleet replacement," he said.

"If on the other hand Aer Lingus is privatised, or even partially sold off, the country will lose a strategic company that is vital to our open, island economy".

Mr McQuillan said the union had received the support of a number of county councils and local authorities and were today meeting Fianna Fail councillors from Meath, Cavan and Monaghan.