SIPTU would oppose proposals by Aer Lingus to establish a number of new subsidiary companies as part of its restructuring plan, it said yesterday.
Speaking after a meeting between Aer Lingus management and union representatives to brief unions on the proposed survival plan for the airline, SIPTU's national industrial secretary Mr Noel Dowling said the proposal would have no effect on the company's cost base and made no sense in terms of the survival plan.
"Frankly, we view this proposal as a cynical exercise to use the current crisis to introduce outsourcing by the back door," he said. "It will affect Shannon and Cork particularly badly and it is highly unlikely that Aer Lingus workers will agree to this."
Mr Dowling said the Government must come up with a form of funding for redundancies which will not threaten the company's viability. The survival plan outlined to the unions contained no provision for redundancy payments or the future capital needs of the airline, he said.
"The funding for these elements of the plan is expected to emerge after next Tuesday's cabinet meeting," said Mr Dowling.
"In this context, management confirmed to us this morning that the funding of redundancy payments through a commercial loan, backed by a Government guarantee, would financially cripple the airline. Given this reality, the Government would have to come forward with an alternative funding proposal by next Tuesday."
Following the meeting, IMPACT's Mr Michael Landers said the union would have to examine the plan in greater detail. It would be seeking precise details on job cuts, redundancy arrangements and work practice changes sought by the airline.
"One of the questions we will be asking is: 'are the numbers left behind sufficient to actually operate the schedule and what will that mean for our people in terms of what work practices would be involved?'," said Mr Landers.
He said IMPACT would be seeking voluntary redundancies, flexible working practices and the use of leave of absence to minimise the effects on workers.
"But we will be insisting any redundancy programme is done exactly in accordance with the law," said Mr Landers. "If the company selects people for redundancy on anything other than a last in, first out basis, or on a voluntary basis, we would regard those as unfair selection for redundancy."
Meanwhile, the employers' body IBEC said financial support was justified subject to the necessary rationalisation being agreed by all of the parties. IBEC said the US government had introduced substantial aid packages to a number of US airlines which are in direct competition with Aer Lingus on its pivotal transatlantic routes, while a number of European governments had also introduced support arrangements for their national carriers.
"In such circumstances failure to support Aer Lingus or any other Irish airline operator facing similar circumstances would place such companies at a competitive disadvantage at a time when the industry is facing major challenges," it said
