SIPTU prepares for Aer Lingus strike ballot

THE impending battle between unions and the Government over the privatisation of Aer Lingus moved a step closer yesterday with SIPTU preparing to ballot on possible strike action in the coming weeks.

With an expected Government decision to sell 75% of the airline just around the corner, SIPTU is to hold a series of emergency meetings around the country next week to consider a strike ballot.

However, in a more conciliatory meeting than expected yesterday, Transport Minister Martin Cullen promised no decision would be made in the next two weeks before further discussions are held with unions. An expected decision before the end of February was not forthcoming leaving a mooted June flotation increasingly in doubt.

Mr Cullen also agreed for the first time to bring Irish Congress of Trade Union (ICTU) proposals for a State holding company for all semi-state bodies to Government. However, the move appears to be little more than an appeasement gesture towards unions as difficult social partnership negotiations remain deadlocked. Despite the conciliatory tone of yesterday’s meeting, Mr Cullen and Taoiseach Bertie Ahern have made it clear a sale of Aer Lingus is a Government commitment which will not be altered. Nevertheless, unions welcomed yesterday’s development. “The Minister has agreed that he will not be going to Government in advance of engagement between ourselves and Aer Lingus management on issues which concern us. That will take weeks,” said SIPTU national industrial secretary Michael Halpenny.

IMPACT’s Michael Landers also welcomed yesterday’s meeting. “He has directed the company to engage in discussions with trade unions. That means that the company now has to engage with us and deal with issues such as the pension deficit and security of employment. We think that’s a positive outcome.”

On Wednesday, Aer Lingus announced operating profits of €72m last year, down from €107m in 2004. And the airline desperately needs the funding from a partial sale to invest in new aircraft for proposed trans-Atlantic routes. There is speculation though that the proceeds of privatisation would also allow the company’s €250m pension deficit to be rectified. It is thought a flotation would raise €700m-€800m.

Staff at Aer Lingus already own 15% of the company through an existing ESOP and there are suggestions that a majority will support a part-privatisation so long as they receive their stake.