Concessions linked to 4% pay rise at Aer Lingus

Aer Lingus SIPTU members have expressed "total dismay" at a Labour Court recommendation that they negotiate further concessions with management in return for the final 4 per cent payment under the Programme for Prosperity and Fairness (PPF).

The union has warned that the industrial relations climate will deteriorate if the situation is not resolved.

Last night, Aer Lingus welcomed the Labour Court recommendation, and said its priority now was to enter into negotiations as proposed by the court.

An Aer Lingus spokeswoman said the company was anxious to conclude an agreement on the "further change" items as soon as possible. This would facilitate the payment of the 4 per cent.

In January, Aer Lingus management produced a list of 10 items which would be linked with the 4 per cent. They include new shift rosters and a quicker turn-around of aircraft, as well as other flexibility and productivity measures.

Mr Christy McQuillan, SIPTU's Aer Lingus branch secretary, said these issues would have to be discussed in their own right, and not in the context of the PPF.

He said workers had just come out of a 15-month pay freeze, and were not in the mood for compromise on this issue.

He said during the pay freeze, the company returned €73 million profits from its operations up to December 2002. Management had budgeted for a €27 million loss in 2002.

"We believe the Labour Court has chosen to ignore the fact that the workers in Aer Lingus have already made an enormous contribution towards turning the company around," Mr McQuillan said.

Because of this, the final PPF payment should not be dependent on any further changes. "If management is not prepared to accept this, then there is a real danger that the industrial relations climate in Aer Lingus will quickly deteriorate."

The Aer Lingus SIPTU shop stewards will meet in the Skylon Hotel tomorrow to consider their response to the Labour Court recommendation. SIPTU officials will then meet with Aer Lingus management at 5 p.m. at Aer Lingus headquarters.