Aer Lingus unions to fight 1,300 job cut plans

UNIONS at Aer Lingus are set to mount a strong campaign to fight plans to cut the workforce at the airline by almost a third.

Aer Lingus chief executive Willie Walsh will unveil a radical business plan at a board meeting later today that will recommend the axing of 1,300 jobs. If implemented in full, the rationalisation programme would see the current workforce of 4,000 reduced to 2,700 by 2007. Job losses would affect all divisions of the airline and impact on staffing levels at Dublin, Cork and Shannon.

Union sources have warned that they will oppose any attempt to introduce enforced redundancies, especially as the firm is on target for record profits of €95 million in 2004.

SIPTU president Jack O'Connor questioned the purpose and objective of such "radical cost cutting".

Workers are concerned that the rationalisation plan is solely motivated by the desire of management to make the company more attractive for privatisation.

Last month, Mr Walsh and two other senior executives controversially sought, but were refused, permission to examine private investment options which could include a management buyout proposal.

It is believed Mr Walsh will recommend a sweeping list of reduced staffing levels as well as the outsourcing of catering and cleaning.

SIPTU said unions would insist that Aer Lingus honoured outstanding obligations arising from previous rationalisation programmes. Mr O'Connor said the current workforce had played a major role in turning Aer Lingus into a profitable airline.

"The company's employees have absorbed a great deal of pain over the past number of years involving extensive job losses and the diminution of their standards of employment," said Mr O'Connor. "We are not oblivious to the need to plan ahead and to anticipate the demands of a highly competitive marketplace."

However, he added workers would resist any actions which would "facilitate the enhancement of the wealth of a few individuals". "

Mr Walsh will argue that further efficiencies, including job cutbacks, are necessary because of the highly competitive environment in the airline industry where Aer Lingus is in growing competition with no-frills carriers like Ryanair.

Aer Lingus has also concluded that its current revenue basis is unsustainable as the airline moves towards a low-cost model.

In an appearance before the Oireachtas Committee on Transport last week, Mr Walsh sought to alleviate concerns about job cuts by pointing out that 80% of savings achieved since 2001 had been through non-staffing resources.

However, the company needs to invest €600 million replace its short-haul fleet. The company is also considering further expansion in continental Europe.

Last night, Government sources said the contents of the business plan were unlikely to affect the decision on the national carrier's future. A Cabinet sub-committee established to examine the State's ownership of Aer Lingus is not scheduled to meet until September.