Cuts in Aer Lingus should start at the top, the Labour Relations Commission (LRC) has told the company in its proposals on the management's Survival Plan. Board members should forgo all fees and bonus payments should not be paid to senior executives until the airline returns to profitability. The board is to consider the proposals today.

It is the first time in the history of the State that the LRC has made such a proposal. "Since the board of the company and senior management have proposed and endorsed the Survival Plan, the sacrifices which are being sought by them from employees must be seen to be applied on an equitable basis," the LRC states. Although the LRC has modified the company plans, it still represents considerable pain for the workforce. It says changes in the Employee Share Ownership Plan is a matter for separate discussions between the unions, company and Government. It also refrains from making any changes to the company's voluntary severance package.

On pay it proposes that unions suspend for 15 months their right to seek increases under the Programme for Prosperity and Fairness. The company wanted a 27-month pay freeze. This leaves open the possibility of the unions claiming some element of backdating. The LRC also proposes a freeze on incremental pay increases until April 1st, 2003. Aer Lingus wanted the freeze to continue until April 1st, 2004.

On public holidays the LRC proposes staff give up one day a year in 2002 and 2003. The company wanted an indefinite reduction of two days a year. On overtime the LRC proposes the reduction of premium rates from double time to time-and-three-quarters; the company wanted time-and-a-half.