Impact seeks guarantees in advance of any Aer Lingus flotation

One of the two main unions in Aer Lingus yesterday sought guarantees on a range of issues including pay and pensions in the event…

One of the two main unions in Aer Lingus yesterday sought guarantees on a range of issues including pay and pensions in the event of the airline being privatised. Chris Dooley, Industry and Employment Correspondent, reports.

Impact, which represents 1,800 Aer Lingus staff including cabin crew, pilots and middle managers, set out five "tests" which needed to be met in advance of any flotation.

Its stance differs from that taken by the other main Aer Lingus union, Siptu, which has expressed outright opposition to privatising the airline.

The unions yesterday met Aer Lingus chief executive Dermot Mannion for talks put in place last week on foot of representations made by them by Transport Minister Martin Cullen.

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Mr Cullen told the airline to actively "engage" with the unions over the sale plan and its impact on the pension scheme used by the airline's workers.

Mr Mannion yesterday outlined to the unions how some of the proceeds of a privatisation could be used to shore up the pension fund, which could be facing a deficit of €336 million in the years ahead. Aer Lingus and the Department of Transport intend to use funds from the sale to create a supplementary pension fund which could be used to shore up the existing fund.

It is understood he said he was confident a decision on a sale would be taken soon, allowing a flotation in June. A roadshow aimed at potential investors will also be undertaken.

Siptu national industrial secretary Michael Halpenny said after the meeting that the union would have to consider the proposals in detail before responding.

In the meantime, Siptu would proceed from today with general meetings of Aer Lingus staff at which a ballot for industrial action would be considered.

The intention was to give the union a mandate for such action in the event of changes being implemented without agreement, he said.

It is understood that Mr Mannion did not put forward any particular sum yesterday that might be available for the pension fund in the event of privatisation.

In a statement issued after the meeting, Impact said it had told Mr Mannion it expected five tests to be met before any flotation.

It said any sale must result in substantial expenditure on additional aircraft and must also yield sufficient investment in staff pensions to ensure that current benefits are maintained.

The union also wants outstanding pay issues involving piliots and other staff settled; it is seeking to have a now completed profit-sharing scheme extended; and it wants guarantees on collective bargaining arrangements and job security "in a post-flotation Aer Lingus".

Impact deputy general secretary Shay Cody, who attended yesterday's meeting, said any flotation would be "worse than pointless" if the funds raised did not translate into more and better planes.