Aer Lingus staff offered pay-off deals

More than 1,300 workers at Aer Lingus were offered €40,000 pay-off deals today as part of plans to turn the airline into a no frills operator.

Bosses at the airline claimed the package was one of the highest ever redundancy schemes in the history of the State.

Willie Walsh, Aer Lingus chief executive, said the carrier had already moved towards a low-fare basis but that more change was needed.

“We have been very successful in transforming to a low-fare airline but it can’t stop where we are,” Mr Walsh said.

“Our fares have come down but our fares need to come down further, and we are continuing to lower our fares.”

A radical three year restructuring plan aims to move the State airline to a no frills, low-cost carrier, axing 1,325 staff.

Mr Walsh also proposed a management buy-out of the State airline, but no decision is due before September.

However workers at the airline have voted nine to one in favour of strike action over management plans to slash the workforce by more than 1,300.

Each of the severance options represents at least nine weeks pay per year of service for all staff with a minimum offer of €40,000.

Michael Halpenny, SIPTU National Industrial Secretary, said pressure from the unions had forced company bosses to put forward such a lucrative offer.

“One thing is clear, there is no way this offer would have been on the table had the unions not said to the company that in the context of an early agreement there would have to be a satisfactory package,” Mr Halpenny said.

Union chiefs said they had called for a redundancy package that reflected the profitability of the company. Aer Lingus looks set to hit profits of €100m for this year.

Mr Walsh said the carrier was battling for survival in the world’s toughest industry.

And he claimed more than 80% of savings achieved at the company in the last few years came from non staff related cuts.

“We are not trying to reinvent the airline as another Ryanair. We are trying to become even more competitive on our fare structure,” Mr Walsh said.

“We are a commercial organisation and we are operating in the most competitive industry in existence today – the industry and the competitors don’t stand still.”

Mr Halpenny also said workers who stayed on at the airline should be offered increased pay, but they were not against new working rules.

Reports had suggested unions would push for a 10% pay rise for staff that remained.

The deadline for decisions on the pay-off deal must be made by September 14.