Aer Lingus unions get board transcript

Union representatives at Aer Lingus will today be given a full note on what exactly the airline's chief executive said at a board meeting on Monday on the future of TEAM, its aircraft maintenance subsidiary.

It follows comments made by Mr Emmet Stagg, Labour's spokesman on public enterprise, on Morning Ireland yesterday. Mr Stagg said that the board meeting had been told that, if there was no agreement on the sale of TEAM, £65 million in loans which Aer Lingus had advanced to the subsidiary would be withdrawn. This would effectively bankrupt TEAM and an examiner would be called in.

Danish group FLS is currently carrying out a due diligence process on TEAM with a view to buying it for a figure reputed to be approaching £30 million. Management and unions are, in tandem, negotiating a range of issues, including the buying out of letters of guarantee which many workers hold. The letters provide for their return to Aer Lingus if anything happens to TEAM.

It is understood that the union representatives met Mr John Behan - a management consultant who has been working with Aer Lingus - regarding Monday's board meeting yesterday afternoon.

Last night, Mr Tony Walsh, of SIPTU, said the union representatives had asked for a full note on what was said by chief executive, Mr Gary McGann at the board meeting. This is expected to be furnished today.

Mr Walsh said a meeting of union representatives had taken place yesterday morning and a lot of anger and frustration had been expressed. He said if the comments attributed to Mr McGann were true, it could change the whole complexion of the unions' approach to the current talks.

Mr Behan assured them he would set out clearly what the Aer Lingus position was.

Mr Stagg said last night he was standing by his remarks. He said no formal proposal had been put to the meeting on the issue. He accused Aer Lingus of using scare tactics because the company knew the matter would be reported back to the Central Workers Council by the worker directors who attended the board meeting. Mr Stagg claimed that Mr McGann told the meeting that, if the FLS deal was not accepted, they would have to withdraw the loans. TEAM staff would revert to Aer Lingus, there would be no work for them and they would then be made redundant.

In a statement last night, Aer Lingus confirmed that there had been a review of the proposed sale of TEAM to FLS at Monday's meeting. It said no proposals relating to TEAM had been put to the board. "Therefore no decision relating to the proposed transaction or any consequences arising was taken by the board," it said. The Minister for Public Enterprise, Ms O'Rourke told Morning Ireland that it was in the board's remit to review the £65 million loan to TEAM at the beginning of this year. She reiterated that no deal would happen without the workers' agreement. A facilitator, Mr Gerard Durkan, SC, was appointed within the last week to help management and unions reach agreement on various issues regarding TEAM and the proposed deal.

Ms O'Rourke said the process should be allowed to continue. "At the end of the day, it is the workers themselves who have the choice to decide their own future," she said.

A spokesman for Ms O'Rourke said last night that she had nothing further to add to her comments on RTE.