SIPTU gives cautious welcome to alliance

SIPTU, the main union representing Aer Lingus employees, has given a cautious welcome to the Government's goahead for a strategic alliance with American Airlines and British Airways. SIPTU branch secretary Mr Tony Walsh said last night that the union's own consultants had advised that the US- and British-based airlines were the "best fit for Aer Lingus".

However he refused to be drawn on whether the 4,000 employees would be seeking an increased share holding in the company at this stage. At present they are entitled to 5 per cent of the equity, funded mainly through savings under the Cahill plan and a profit-sharing mechanism.

But a spokesman for IMPACT, which represents the airline's 400 pilots, said his members would be seeking another 14.9 per cent in an employee share option plan on top of the existing 5 per cent. "The Cahill plan is history. There is no reason why Aer Lingus employees should not get a similar shareholding to those at ICC, Telecom Eireann and anywhere else. We shall open talks as soon as practicable."

SIPTU's Mr Walsh said that union members welcomed the decision by the Minister for Public Enterprise, Ms O'Rourke, not to give equity in Aer Lingus to the proposed alliance partners. "We took the view . . . that both Aer Lingus and its alliance partners have enough to do developing a relationship without one of them exercising an undue influence in Aer Lingus's operations at this initial stage."

On the Initial Public Offering, Mr Walsh said: "We're getting mixed messages from the Minister and the Department on whether it is to be an IPO or total privatisation. We're seeking a meeting with the Department and the company at a very senior level to see precisely what they are about. Once we know, we'll comment on it."

It was in this context that Mr Walsh refused to comment on whether Aer Lingus workers would be seeking to follow the Telecom Eireann workforce in seeking a 14.9 per cent shareholding. However, he gave an unqualified welcome to Ms O'Rourke's decision to make the announcement now and not allow speculation to drag on into the autumn.