SIPTU posed to strike over Aer Lingus concerns

Trade unionists served notice of industrial action on Aer Lingus today, threatening strikes if the company proceeded to privatisation without agreement on issues of concern to staff.

SIPTU National Industrial Secretary Michael Halpenny said staff were worried about job security, compulsory redundancies, pensions and ensuring their current shareholding is not diluted following the Government’s decision to sell a majority stake in the national airline.

“In deference to the considerable public support and goodwill that we have had to date for our campaign and so as not to unduly inconvenience the travelling public over the Easter period we are issuing our notice so as not to affect travelling arrangements over the holiday period,” he said.

“The notice will therefore only come into effect after the Easter period on the expiry of two weeks’ notice from today.”

The Government yesterday announced its intention is to sell a majority stake in the company.

After years of speculation, Transport Minister Martin Cullen said work on the process to float up to 59.9% of the company on the stock exchange would begin immediately despite the continued opposition of trade unions.

He said the decision was taken to give Aer Lingus the commercial flexibility and financial muscle to compete and succeed in the global marketplace.

The Government, which currently owns 85% of the company, insisted it will retain a shareholding of at least 25.1%, to allow it to balance the airline’s commercial needs while protecting the state’s strategic interests.

Staff own 14.9% of the airline, which employs 4,000 people and operates over 30 aircraft serving cities across Europe, the United States, and most recently Dubai in the United Arab Emirates.

It is understood Minister for Finance Brian Cowen has mandated management to negotiate with the unions on a package of measures to address their concerns.

The Government also said it was open to considering an upfront investment from the sale proceeds and increased contributions by both the company and its employees to address the deficit in the company pension scheme.

The final details of the sale will be agreed between Finance Minister Brian Cowen and Transport Minister Martin Cullen and then the disposal of the state’s majority shareholding will be put before the Dáil for approval.

Taoiseach Bertie Ahern today defended the Government’s decision in the Dáil.

He told TDs the move would secure the future of the airline.

Sinn Féin, the Labour Party, the Greens and Socialist Party TD Joe Higgins have opposed the sale.