Agreement to buy out the letters of guarantee of TEAM's 1500 workers is still some way off, the craft unions at the aircraft maintenance subsidiary have indicated. The unions say a range of "critical issues" which will require detailed negotiations are still outstanding.

The unions were reacting to a report in yesterday's Irish Times which said it is expected that a letter detailing a final offer from Aer Lingus will be drawn up next Tuesday. Buying out the letters of guarantee and resolving other issues will pave the way for the sale of TEAM to FLS Industries, a Danish conglomerate.

The group of craft unions has tabled an extensive series of questions to the company, but has yet to receive answers, according to a statement by Mr Frank O'Reilly, on behalf of the Aer Lingus Craft Group of Trade Unions. The unions represent 1,100 of the 1,500 workers at TEAM.

Mr O'Reilly said the unions were anxious to try to reach agreement on a range of issues affecting the future of its members regarding new investment in TEAM. He said the primary issue was the security of his members' jobs, but there are many other issues to be dealt with before any agreement can be reached.

It is understood that differences have emerged over the terms of reference under which the talks - billed as consultations rather than negotiations - are taking place. Sources said employees wanted Aer Lingus, which owns TEAM, to discuss not only the proposal to sell the subsidiary, but to outline exactly what kind of investment TEAM needs. This has not happened, say sources.

It is understood that more than 40 questions have been put to Aer Lingus by the craft unions. These include a series of questions relating to whether Aer Lingus offered minority shareholdings in TEAM - which the unions say would be in line with current agreements. The unions also asked whether Aer lingus turned down minority share bids, and if so, why?

The unions also posed a series of questions on the FLS attitude to unions.

FLS is negotiating to buy TEAM, subject to a due diligence process. Aer Lingus must first reach a deal on buying out the letters of guarantee which state that TEAM workers can return to Aer Lingus if anything happens TEAM.

Aer Lingus has put a value of £37.5 million to buy out the letters and to compensate workers for losses when they were laid off in 1994.