Aer Lingus on collision course over job cuts

MANAGEMENT and unions at Aer Lingus are on a collision course after officials last night warned they would resist plans to cut 1,300 jobs.

After a tense meeting yesterday, union leaders said the radical restructuring proposals, to be phased in over three years, cannot be put in place without full consultation.

They also made it clear that massive job cuts were not acceptable at a time when the airline looks set to post record profits of almost €100 million.

Having gained board approval for the plan on Monday, senior executives, including chief executive Willie Walsh, outlined the broad thrust of its proposals to the union yesterday.

However, it is understood that it was not in a position to give specific details in relation to some of its more contentious plans, including the possible outsourcing of catering and baggage handling services, as well as a radical reduction in the airline's cargo services. These are expected to be outlined in more detail at a meeting with the group of unions next week.

However, though full negotiations have yet to begin on the controversial plan, the initial reaction of the unions was overwhelmingly negative.

In addition, the announcement last month by Mr Walsh and two senior executives that they intend to launch a bid to take the company private has fuelled suspicions among the unions that the plan is intended to facilitate management privatisation plans.

Sources said last night that, tactically, Mr Walsh's public stating of his intentions may prove problematic during the negotiations.

Speaking after the two-hour meeting at the airport yesterday, SIPTU national industrial secretary Michael Halpenny said the unions do not want confrontation but would not shy away from it. "The point we made is that there will be no plan without full consultation. Any attempt to impose change will be resisted," said Mr Halpenny.

He pointed out that Aer Lingus was a highly profitable company thanks to sacrifices made by its staff.

"It is not good enough for management to think they can simply imitate Ryanair or EasyJet and boost profits by sacking more workers and exploiting those left behind. We have no interest in participating in a rationalisation plan whose main purpose is to facilitate privatisation and enhancing the wealth of a few individuals."

Saying that he would not allow his members to be "bullied", Mr Halpenny also criticised Transport Minister Seamus Brennan for saying publicly that compulsory redundancies could not be ruled out.

"His intervention was pre-emptive and it was entirely unhelpful for the minister to make those presumptions before negotiations have begun," he said.

Arthur Hall, of the Technical Engineering and Electrical Union, whose members carry out maintenance on aircraft, also dismissed the business plan.

"Willie Walsh may be interested in turning Aer Lingus into a short-haul, short-term, no-frills airline that maximises profits for senior management and private investors, but we believe the airline must continue to provide the range of services (Ireland) needs."

Aer Lingus said it had no comment to make about yesterday's meeting.

Its plan provides for new services to 24 European destinations. It also calls for an ambitious expansion plan in Europe, basing some of its aircraft outside Ireland.