Aer Lingus unions find €10m savings

TALKS between the National Implementation Body and Aer Lingus management and unions have identified alternative ways of making up to €10 million in savings for the company.

Last month, unions had threatened strike action over management’s insistence on introducing the Programme for Continuous Improvement 2007 (PCI-07) — cost-saving plan, which would affect workers’ pay scales, holiday entitlements and overtime payments.

Talks between both sides, facilitated by the Labour Relations Commission, have been underway since the stoppage was averted. The NIB said yesterday the LRC discussions had demonstrated that there is “reasonable justification” for the labour cost savings. It also said the withholding of due pay increases ran counter to the Towards 2016 pay agreement and that they wanted the outstanding issues to be overcome by partnership and the development of appropriate structures.

SIPTU national industrial secretary Michael Halpenny said the NIB proposals “appear to vindicate the union’s view that there were always alternative ways of dealing with cost savings”.

“We were always equally of the view that all the issues around Shannon would be the subject of discussion with the union. The pay freeze had already been referred by SIPTU to the Labour Relations Commission and Labour Court earlier today.

“We anticipate the early processing of the dispute in the New Year,” Mr Halpenny said.

Research is also to be carried out in the next three months on staff rates, vis-a-vis airline norms and this research will be used to advance pay, conditions and grading discussions.

The airline is under pressure from investors to have PCI-07 in place before the end of the year to improve its overall competitiveness.

Its decision to give all new employees and those who wish to move from temporary to permanent status PCI-07 contracts has infuriated SIPTU which claims it will mean cuts in pay of more than €4,000 a year and longer working hours

The NIB statement will be considered by SIPTU shop stewards on January 3.

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