Aer Rianta break-up legislation due next week

Legislation paving the way for the restructuring of Aer Rianta is due for before the Dáil next Tuesday, but the break-up of the…

Legislation paving the way for the restructuring of Aer Rianta is due for before the Dáil next Tuesday, but the break-up of the airport operator is not inevitable, SIPTU maintained today.

The Department of Transport confirmed this afternoon that the legislation, which was passed some time ago by the Cabinet, would be published on Monday or Tuesday at the latest.

But the department refused to comment on the details of a deal between the Government and SIPTU which removed the blockage in the wage agreement talks.

SIPTU today disclosed details of the deal saying the legislation was being brought forward as part of the agreement. However the State's biggest union warned that the break-up of Aer Rianta into three separate companies to operate Dublin, Cork and Shannon airports was not a foregone conclusion.

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In a terse statement this afternoon, SIPTU said it remained opposed to the Minster for Transport, Mr Brennan's, plan, adding that "no business case has been made out for such a move".

Unions have insisted the pay and conditions of workers cannot be denigrated by the restructuring proposal. And SIPTU today insisted that their future co-operation was reliant on the legislation including guarantees for workers pay, terms and conditions.

The legislation will allow for Aer Rianta to be split into three separate companies but no assets or staff can be transferred to the new entities until they have produced sound business plans in consultation with the unions. Such a move cannot happen until April 30th, next year at the earliest under the deal.

"This process, which will be provided for in the proposed legislation, will afford all the stakeholders an opportunity to evaluate the likely prospects for the success of the new entities and their capacity to sustain good employment and provide a high quality aviation infrastructure," the SIPTU statement said.

Another Aer Rianta union, the Technical Engineering and Electrical Union (TEEU), today welcomed the end to the stand-off.

Regional secretary Mr Arthur Hall said: "The unions at Aer Rianta have been forced to do something that the Minister should have done and examine in detail the business case for breaking up a highly profitable state-owned company.

"The outcome of the current talks is not a victory for the Minister or the unions, but it is a victory for common sense and for the taxpayer."

Meanwhile, the Labour Party called for Mr Brennan to confirm details of the deal.

Transport spokesperson Ms Roisin Shortall signaled her party could oppose Mr Brennan's plan to bring the legislation before the Oireachtas in the near future.

"It is essential that we should now know the full detail of what has been agreed, to allow time for it to be properly considered and assessed before legislation is introduced into the Dáil. We will certainly strongly resist any attempt at being bounced into rushing what is likely to be very complex legislation," the TD for Dublin North West said.