Aer Lingus response 'encouraging'

The trade union Impact has said it is encouraged by the response of the Aer Lingus board to alternative cost-cutting proposals given to the airline yesterday.

The board at Aer Lingus met earlier today to consider the proposals put forward by unions.

Talks between unions representing cabin crew and the airline over the introduction of new measures at the Labour Relations Commission ended at 1.30am this morning. However, discussions with the Irish Airline Pilots Association (IALPA) continued until 5am.

Impact trade union, which represents cabin crew, pilots and middle management grades at Aer Lingus, claims its cost reduction proposal meets the airline's cost savings requirements. However, Aer Lingus last night said it was still nowhere near a deal.

The airline is seeking €97 million in cost savings. Of this, about €75 million relates to pay.

In a statement issued after this afternon's board meeting at Aer Lingus, Impact said said that acknowledgment of the work done by members of the cabin crew branch "was a welcome development at the end of a difficult and intensive process of negotiation."

It added that  IALPA members remained open to discussions on achieving cost savings and said it understands that while Aer Lingus has acknowledged the extent of what had been achieved so far, the pilots'
matters are not yet finalised.

Impact said it believes the Aer Lingus board has authorised management at the airline to continue discussions with the pilots branch.

It is understood that if no last-minute deal is reached, Aer Lingus will begin issuing compulsory redundancy notices to staff next week.

Aer Lingus confirmed plans to cut 676 jobs as part of a restructuring plan aimed at reducing annual operating costs before the end of 2011 in early October.

The company said its restructuring plan involves achieving cost savings of €74 million and non-staff cost savings of €23 million. In addition to reducing staff numbers,  the airline said it was necessary to "fundamentally change" so-called legacy work practices and would be seeking an average 10 per cent pay cut for staff whose basic pay exceeds €35,000 a year.

It said that a reduced flight schedule and changes to work practices will lead to 489 redundancies in operational and support areas. These cuts are in addition to the departure of 100 staff this year, including 63 temporary cabin crew who were let go last month.

Aer Lingus has said it is also seeking to cut a further 187 positions from its back office and headquarters operations, reducing staff at its head office by 40 per cent by 2011.