The situation at Aer Lingus is bad and, despite the welcome intervention of the Labour Court, is likely to worsen in the coming week because of a series of industrial disputes. Thousands of passengers had their travel plans disrupted yesterday at the start of the holiday weekend when clerical staff engaged in a four-hour stoppage at Dublin, Cork and Shannon airports. And while Aer Lingus attempted to minimise the dislocation caused to its passengers by rescheduling flights, travellers were still faced with missed connections and long delays.
At a time when the company is being prepared for public sale by its management, on the instructions of the Coalition Government, the current industrial relations unrest represents a huge negative on its prospectus. The Minister for Public Enterprise, Mrs O'Rourke, has expressed her "deep regret" to the Dail over the inconvenience caused to customers. And she said she was very much aware of the implications of the dispute for the tourism, consumer and business sectors of the economy.
As might be expected, the minister put distance between herself and the management of Aer Lingus. On the one hand, Mrs O'Rourke said she "strongly shared" the views of the opposition Dail parties that adjustments were necessary in the pay and conditions for certain sectors of the Aer Lingus workforce because of the "sacrifices and restraint" that had been required in saving the airline six years ago. But, at the same time, she said the Government's mandate to the board of Aer Lingus was to maintain the commercial viability of the airline. The minister thought it was possible to find a balance between those imperatives. At no stage did she refer to the sale of the company and the implications that decision has had for management in attempting to contain wage levels and maximise profitability.
This is the third successive week of industrial unrest at Aer Lingus, involving five groups of workers. Next Thursday, the catering staff at the airline will take further industrial action, with uncertain consequences. And, on Friday, the clerical staff is likely to ground most flights when it engages in a 24-hour stoppage. Significantly different pay levels create added complications. Pilots are demanding a 100 per cent pay increase which, if conceded, could affect the pay prospects of other workers. And the Government is prohibited from providing any extra funding for Aer Lingus under EU competition rules. On the positive side, serious negotiations appear to have started between cabin crews and management. But, given the inter-union rivalry that now exists between IMPACT and SIPTU, the prospects for an early settlement involving differing groups of workers are not great.
There is deep anger and disillusionment within the Aer Lingus workforce. People who exercised wage restraint and adopted new work practices in order to save the airline under the Cahill plan six years ago are demanding a share of recent profits. The so-called Celtic Tiger is not roaring for them, but living costs are rising rapidly. The response of Aer Lingus workers to management prevarication on wage demands has been likened by some observers to the anger that drove the nurses' dispute. If that should prove to be the case, the airline, the workers and the travelling public are facing into a very difficult few months.