PAUL McGREGOR,
Sir, - With the Junior and Leaving Certificate examinations commencing, I wonder if the following question would prove problematic for any future business leaders due to sit the Business Studies paper shortly:
"An Irish semi-state transport company is faced with industrial action in the form of a one day strike. The company is struggling to maintain viability after a difficult year in which it incurred significant trading losses due to foot and mouth disease in its home territory and terrorist attacks in one of its most important foreign markets. What should company management do in advance of the proposed strike that may cost it $2 million a day?
"(a) Negotiate with the employees to reach a compromise, perhaps utilising the State's disputes resolution mechanisms. Resultant cost: minimal.
"(b) Do not negotiate, allow the strike to take place and reopen for business as soon as possible to minimise losses. Resultant cost: €2 million
"(c) Do not negotiate, allow the strike to take place, throw business logic out the window by arbitrarily deciding not to reopen the business for five days. Resultant cost: in excess of €10 million.
"(d) Commence with (c) above and then compound this by refusing to accept any customer bookings for one week before reverting to (a) above. Resultant cost: surely an accusation of reckless trading."
The actions of Aer Lingus management during the recent dispute have succeeded only in further threatening its own viability. It has severely inconvenienced its passengers - its source of revenue. It has alienated potential customers. It has eroded much of the financial savings that its employees had already contributed through the implementation of its survival plan. It has done untold damage to its own brand image and that of Ireland as a destination for business and recreation.
As it is still a semi-state company under the ultimate control of the Government, can the returning administration sit idly by and permit such dangerous decisions be taken by a company whose management style defies belief?
Air transport is likely to remain an integral cog in the development of this island state. Unless the airline management seeks to nurture our external links instead of destroying them through its adolescent attitude, the development of this country will be severely impeded. Neolithic posturing should have no place in 21st-century industrial relations. - Yours, etc.
PAUL McGREGOR,
Dublin Road,
Sutton,
Dublin 13.
... ... * ... * ... * ... ...
Sir, - I've watched the Aer Lingus situation since May 30th with dismay. I question the airline's decision to shut down operations in light of the pilots' walk-out. The only people who were hurt by the management's decision were the thousands of stranded passengers and the future passengers who will have to bear the cost of this closure.
If Aer Lingus is really in such jeopardy, why wasn't management talking to the pilots' union? Why did it take the Labour Court to tell them to do so? I don't necessarily agree that the walk-out was a good option either since the airline is in trouble, but for the life of me, I can't understand how stranding passengers and incurring costs made sense either! - Yours, etc.,
ANNMARIE
DONOVAN-CORNACCHIA,
Elmsford,
New York,
USA.