THE THREAT of industrial action at Aer Lingus from next week has been withdrawn following an agreement on cost savings between the airline and trade union Siptu.
Siptu said last night that a framework agreement reached in talks at the Labour Relations Commission represented an alternative to proposals put forward by management to outsource jobs at the airline.
The union said it would be consulting with members in advance of any ballot, beginning with meetings next Monday and Tuesday.
It said its aim was to complete this process before December 4th and during this period there would be no industrial action.
The union warned that if members rejected the proposals its mandate for industrial action would remain live and could be activated if the company proceeded with outsourcing. Aer Lingus said it had agreed a framework "which may deliver the required cost savings".
However, it said that until these savings were verified and confirmed by the union, the original outsourcing plan would remain on the table.
The company said Siptu had indicated that it would be in a position to confirm the savings by December 3rd.
The board of Aer Lingus is expected to consider the issue at a meeting on December 4th.
Aer Lingus in its statement last night said it welcomed the withdrawal of the notice of intended industrial action by Siptu and the removal of uncertainty for its customers intending to travel next week.
The airline had proposed that up to 1,300 jobs should go through outsourcing, voluntary redundancy and early retirement as part of a move to save €50 million in payroll costs.
Siptu had opposed the outsourcing plan and warned of possible industrial action at the airline from next Monday.
Siptu official Teresa Hannick said the framework deal meant there would be no outsourcing and that staff would remain as direct employees of the airline. But she said the proposals would involve "significant change" for employees.
"Our members did not want to be outsourced. Our main aim was for them to stay part of Aer Lingus. We all understand the economic situation," she said.
Ms Hannick said Siptu officials would consult with union members within the next seven to eight days and in the meantime, there would be no industrial action, she said.
Talks between Aer Lingus and the trade union Impact on proposals to reform cabin crew operations at the airline are continuing.
The company wants savings of €15 million. It has proposed closing cabin-crew bases in Shannon and Heathrow, and using US crews on some transatlantic routes. Impact has not served notice of industrial action.
The deal
The deal reached last night between Aer Lingus and Siptu includes a voluntary severance package of nine weeks a year of service up to a maximum of 156 weeks.
Staff who remain will retain their existing pay and allowances but will have to change work practices. New entrants will be employed on revised terms and conditions.
There will be a 7 per cent reduction in overall numbers of personnel working in ground operations at the airline. The defined-benefit pension scheme is to remain in place for existing and new employees.
The base at Shannon, which had been earmarked for closure, will remain.