Minister for Transport Martin Cullen has agreed to discuss union concerns about the sale of Aer Lingus with his Cabinet colleagues as Siptu threatens to take industrial action over the issue.
The Minister has also instructed the airline's top management to actively "engage" with the unions over the sale plan and its impact on the pension scheme used by the airline's workers. When these talks are completed, Mr Cullen has agreed to meet the unions, whom he met yesterday, again.
The Aer Lingus pension scheme, which is also used by other airport workers, could be facing a deficit of €336 million in the years ahead.
Unions claim a privatisation could worsen this position, although in private plans are being drawn up to use some of the proceeds of privatisation to shore up the fund.
Last night Mr Cullen denied the Government was softening its stance on a sale. A Siptu spokesman said the union was satisfied to see its views relayed to Cabinet.
This week the company said it hoped a decision would be made "within weeks" in order for a sale to go ahead in June.
Unions privately believe there remains a strong chance to block the sale. They want the Government to reject privatisation and instead invest directly in the airline. They also want the Government to consider the idea of a State holding company.
Mr Cullen said he would "convey" these views to Cabinet.
"I have a good working relationship with the unions, and they asked me to convey their views and of course I'll convey their views.
"But it's absolutely clear that for the interest of the workers, the company, tourism and everything we must proceed, and the decision the Government has taken remains."
Any final decision on a sale - known as "phase two" - was not going to happen next week. "I have no plan to go with this next week."
A State holding company would allow private investment in semi-state companies, but done on an arm's-length basis. Under this model, pension funds and other private investors could invest in the holding company, but would not acquire a stake directly in the likes of Aer Lingus. However last night Mr Cullen said the idea of a State holding company was ruled out last year. Next week, Siptu, which represents 2,200 of the airline's 3,475 staff, will meet its members to discuss a ballot for industrial action.
National industrial secretary Michael Halpenny said any sale would have "an immediate and tangible effect" on the pay and conditions of staff. The Aer Lingus pension fund could be placed under threat by any sale, he said.
Mr Cullen said the unions should engage rather than take industrial action. "I think we all accept that would be very bad for the company." Asked when a final decision on the sale might happen, he would only say "over the next few weeks".