Unions remain unconvinced by IAG’s plan for Aer Lingus

Trade unions say they remain unconvinced over IAG's commitment to protect jobs and maintain connectivity at Aer Lingus following talks with group chief executive Willie Walsh.

Speaking after the meeting at Dublin Airport, Mr Walsh said his organisation would not impose a deadline on their attempts to complete a takeover, but refused to discuss the finer details of guarantees sought by the Government with unions.

“I have no deadline. I’ve been clear from the beginning, this is a friendly approach, we don’t want to do anything that’s going to in any way distract Aer Lingus. I’m happy to wait, take time and address the issues that have been raised in a calm and constructive way,” he said.

“We see an opportunity to grow Aer Lingus, we see that opportunity as significantly enhanced as part of IAG, particularly with the joint business that we have in the transatlantic with IAG companies.

"All of that will lead to more aircraft, more aircraft leads to more jobs… so it's good for Aer Lingus employees, but it's also really good for anybody who depends on the success of Aer Lingus in Ireland. I think it's a great opportunity," he added, following a meeting that lasted nearly two hours.

Commenting on behalf of officials from Siptu, Impact and Unite, Irish Congress of Trade Unions spokesman Liam Berney said specific details on employment figures and IAG's proposed commitment to maintain Aer Lingus slots at Heathrow for five years were not discussed, and urged the Government to heed the will of the workers and prevent the sale of its stake.

“We haven’t heard anything today that changes our position, we are unconvinced that the Government shareholders should accept what’s on the table,” he said.

“While [IAG]said that they saw a positive growth path for jobs in the airline, they were unspecific as to where the jobs were and where the jobs would be. They did say that there will be job losses in Aer Lingus and they were very specific on that.

“The Government, if they make a decision to proceed without the issues of the workers being addressed, they can obviously do so but I think that would have some consequences,” said the official, who would not elaborate on what the nature of such consequences might be.

Following a protracted bidding process, IAG remains at loggerheads with the Government over conditions attached to the sale of the State’s 25.1 per cent stake in the national carrier.

Further meetings are due to be held between Government officials and IAG representatives next week in order to discuss the finer details of any share transaction, and Mr Walsh said he is fully willing to participate in further discussions with unions at a later date.

Although Government resolve appears to be softening over the €1.36 billion bid for the airline, a motion passed at the Labour Party's national conference last weekend urged the coalition partners to reject any takeover which does not provide key assurances over jobs and connectivity.

New Aer Lingus chief executive Stephen Kavanagh disagreed with the unions' perspective that the substantive issues of the takeover had not been addressed, and said the proposed sale would be a very positive move for all stakeholders of the airline.

“There’s very little that’s left in doubt. I think the position of IAG and Aer Lingus is completely clear, and ultimately it’s for others now to reflect upon what’s been communicated with them, and to continue to engage with us if further clarification is required.

“Ultimately we continue to believe this is very positive for all stakeholders in terms of direct employment creation, connectivity, and ultimately it’s very good for all stakeholders in Aer Lingus,” he said.