Aer Lingus and pilots given plan to save 400 jobs
Throughout the latter half of 2009, Aer Lingus discussed various ways of achieving the €97 million savings management said was required by next year to keep the airline operating.
Management first proposed 676 job losses from across its operations but primarily focused on pilots and cabin crew. It also sought an average 10% pay cut for staff whose basic salary exceeded €35,000 a year.
An intensive round of talks between the company and unions broke down.
Further talks ensued and a deal was reached with cabin crew. However, the pilots remained at odds with the airline. While the pilots offered savings worth €30m, management said the cost of the package was too high.
The airline said it had no choice but to ground aircraft and have 1,065 job losses.
A final push was then made under Labour Relations Commission chief executive, Kieran Mulvey.
He enlisted Paul Jacobs of Grant Thornton and assessed the financial implications of each side’s proposal, then produced proposals for achieving €30m savings.
He proposed that 50 pilots in the top salary band be let go along with 26 on a different level. Remaining pilots will be subject to 10% pay cuts. There was also loose proposals on pensions.
As an incentive to pilots, Mr Mulvey said the airline should create a €30m “gainsharing” fund that would, when it returns to profitability, be handed to employees based on their contribution to the savings. He said the parties should re-enter talks and refer back to him by January 21.
While the airline said it would consider Mr Mulvey’s findings “fully and thoroughly”, one source said it was likely to be accepted and if so the number of job losses would revert to 676.
The pilots said they had some concerns about elements of the document and would have to seek legal advice on those, and members would have to consider that advice, but that there was a broad acceptance of most of what was contained in it.
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