A Labour Court ruling aimed at ending the long-running dispute at Aer Lingus about workers' terms and conditions if privatisation of the airline proceeds, could be delivered within days, writes Olivia Kelly
The chairman of the Labour Court, Kevin Duffy, heard submissions from unions and management during a two-hour closed session yesterday.
Siptu, the main union representing workers at the airline, is fighting the privatisation of Aer Lingus on two fronts. It is opposed to the move in principle, but is also seeking measures to protect workers' pay and conditions in the event of privatisation going ahead.
The union's main concerns centre on the pay and reward schemes at the company, job security and the maintenance of job numbers, and the future pension deficit.
Last month the company made an offer to workers to deal with their outstanding pay and productivity claim. The offer included a pay rise of 3 per cent, in addition to the 10 per cent recently agreed as part of the national pay deal, and lump sum payments of approximately €4,000 per worker, depending on length of service.
It is understood the company maintained this position in its submission to the Labour Court yesterday.
Siptu said last night it would not be releasing details of its submission ahead of the court's recommendation, as the matter was at a "delicate stage". However, the union said it was seeking "a better increase than 3 per cent".
It also made a submission in relation to the pension scheme, which, a recent study by consultants Mercer estimated, could be facing a future deficit of €336 million.
A spokesman for Siptu said yesterday it would be a "major step forward if the court can come up with a formula where conditions would be protected in the event of part privatisation". However, the pension deficit issue would still need to be resolved.
Preparations for privatisation are continuing and Aer Lingus is scheduled to make an initial public offering in September.