Aer Lingus management told union leaders yesterday the airline could not afford to set aside more than £35 million to £40 million for redundancy payments in its survival plan.
While this would provide significantly more than statutory redundancy for the 2,026 workers affected it would be far less than the terms offered under the Cahill plan. Unless some further funds are available, the unions would be unlikely to be able sell a package to its members.
The figures mentioned at yesterday's meeting between the Aer Lingus chairman, Mr Tom Mulcahy, its chief executive, Mr Willie Walsh, and unions would work out at between £15,000 to £20,000 per employee. Staff made redundant under the Cahill plan received about £50,000 each - over £90,000 at current prices.
However, Mr Mulcahy and Mr Walsh had some good news as well. They are understood to have told union leaders that the airline was salvageable, but only if rapid action was taken.
No deadline was put on the survival plan talks now underway and there were no threats of putting the company into receivership. Essentially the two airline executives are understood to have provided the unions with the same information provided to last week's board meeting and answered any supplementary questions that arose.
Although the company had indicated a few weeks ago that it had no money to pay even statutory redundancy, it is understood it has been able to free up some funds from its aircraft leasing arrangements.
The unions are still awaiting a final report from their own financial advisers and yesterday's briefing has confirmed an interim report they received on the trading difficulties.
However, the meeting failed to indicate means by which the gap between the two sides on the redundancy issue could be bridged.
While career breaks negotiated for pilots and cabin crew in IMPACT might release funds for redundancies, even optimistic estimates suggest no more than 10 per cent of workers in these groups would avail of the opportunity. Another 15 per cent would have to accept severance to meet the survival plan targets. The problem is even worse for SIPTU, where very few members have so far indicated an interest in the career-break option.
The meeting was held at company headquarters and lasted about an hour. It was attended by IMPACT general secretary Mr Peter McLoone, IMPACT deputy general secretary Mr Shay Cody, SIPTU vice-president Mr Jack O'Connor and SIPTU national industrial secretary Mr Noel Dowling. None of them was willing to comment after the meeting.
Later the company issued a brief statement. It read: "The purpose of the meeting was to update the union leadership on the latest developments on the implementation of the restructuring plan at Aer Lingus. At the conclusion of the meeting Aer Lingus reiterated its commitment to work positively with the trade unions to secure the long-term viability of the company."
Meanwhile, the Irish Congress of Trade Unions is seeking a meeting with the Taoiseach, Mr Ahern, to discuss the implications of forced mass redundancies at Aer Lingus for social partnership. The wider trade union movement is still expecting some form of political intervention.