Aer Lingus pilots vote to accept €30m cuts

PILOTS at Aer Lingus have voted to accept a €30 million cost-cutting package that will involve almost 80 of them losing their jobs and the rest facing 10% pay cuts.

Earlier this week, the airline and representatives of its 450 pilots received the findings of an arbitration tribunal which had been asked to make recommendations on how pilots could contribute €30m towards an overall €97m cost-saving package sought by management.

The pilots were the only group which had not agreed their share of the savings.

Kieran Mulvey, of the Labour Relations Commission, recommended that 50 pilots in the top salary band would be let go along with 26 on another level. He also proposed pilots would be subject to 10% pay cuts.

There were also proposals on pensions and as an incentive to pilots, Mr Mulvey said the airline should create a €30m “gain-sharing” fund that would, when the airline returns to profitability, be given to employees based on their contribution to the savings.

Aer Lingus management said it must consult its board on the gain-sharing element of the proposal but is prepared to accept much of the rest of the deal.

Last night, pilots voted 65% in favour of accepting “in broad terms” Mr Mulvey’s proposals.

The Irish Airline Pilots Association said it was eager to get into talks with management on the detailed implementation of the plan. “IALPA gave the membership an assurance that any final proposed agreement would be subject to ratification by way of secret ballot,” it said. “However, separate to Mr Mulvey’s proposals for €30m in pilot cost savings, there are some aspects of the report that have given rise to concern and we have been given specific legal advice on these matters. Unfortunately, our legal advice precludes us from recommending acceptance of these elements of the report.”

Those concerns are understood to be around the suggestions made concerning pensions.

Aer Lingus and its pilots are in dispute about funding arrangements and contributions for the pension scheme, which is currently in deficit.