STATE NOMINEES to the board of Aer Lingus have been directed by the Government to seek to reconcile the commercial objectives of the company with public policy.
Minister for Transport Noel Dempsey told the Dáil in a written parliamentary answer on Wednesday that State nominees have been issued with a mandate to ensure that all future decisions of the company that have significant implications for wider Government, aviation or regional development policies were first considered at board level.
"The mandate specifically states the possible decisions concerned would include decisions on proposals with significant local or national economic implications including a direct impact on employment," Mr Dempsey said in a reply to a question from Labour's Tommy Broughan.
The State nominees to the board of Aer Lingus are solicitor Francis Hackett, economist Colin Hunt and business consultant Chris Wall.
The role of the State nominees to the board of Aer Lingus was criticised last year during the row over the airline's withdrawal from the Shannon-Heathrow route by unions and groups in the midwest.
Details of the mandate given to State-appointed directors of Aer Lingus emerged as the board of the airline is again expected today to consider controversial measures drawn up by management aimed at generating savings of up to €100 million.
The cost-cutting proposals are believed to include the outsourcing of almost 1,500 jobs. This would include more than 1,100 workers at Dublin airport involved in ground handling, cargo and catering, about 80 staff in Cork and more than 300 in Shannon, including cabin crew operating on transatlantic routes.
The board of Aer Lingus has failed to approve the cost-containment plan at two previous meetings. The board members who are thought to have concerns include David Begg, general secretary of the Irish Congress of Trade Unions, and Mr Hunt, a former adviser to Taoiseach Brian Cowen when he was minister for finance.
Aer Lingus's cost-cutting plans have also come under the Government's scrutiny. The Irish Timesreported last month that the Tánaiste and Minister for Trade, Enterprise and Employment Mary Coughlan had expressed her concerns to the airline's chief executive Dermot Mannion in relation to the outsourcing of workers.
Aer Lingus representatives have also been advised by Department of Transport officials that any decisions taken should be in the airline's "long-term" interests.
Aer Lingus sources said that the board had asked management to engage with the trade unions on its cost-saving proposals.
Informed sources said that the intention of management was to begin discussing with the unions on Monday how it believed the savings could be achieved. Management is also expected to suggest to unions that they could propose alternative measures to generate the same level of savings.
Siptu, which represents about 1,700 staff working mainly in ground operations, warned yesterday it would strongly oppose any outsourcing of jobs at the airline. Siptu president Jack O'Connor said if the media reports on the company's plans were accurate it could "torpedo" the proposed new national pay deal.