The Government’s main industrial relations trouble-shooting body has asked the Labour Relations Commission to assess proposals to resolve the Aer Lingus dispute and to report “as a matter of urgency” by next Monday.
The National Implementation Body (NIB) had been facilitating talks between management at the airline and Siptu, which served strike notice on the company this week over its plan to cut more than €74 million in costs through redundancies and outsourcing.
In a statement tonight, the NIB said that having heard from both parties, it remained of the view that there was a need to “achieve a competitive standard in the airline in order to ensure viability”. It said the question of how unit labour costs are calculated offered scope for "creative thinking" to resolve the dispute.
The body noted it had recommended in December last year that, from a competitiveness viewpoint, labour costs at Aer Lingus should be consistent with airline industry norms and acceptable employment standards generally.
“How unit labour costs are constructed offers scope to the parties for creative thinking to see if the objectives of the unions and management can be achieved within this competitiveness template,” the body said tonight.
It noted both the Aer Lingus and Siptu views on how the necessary cost-savings could be achieved at the company.
“Accordingly, the body recommends that as a matter of urgency and at the request of the NIB, that contact would be made with both Siptu and the company by the LRC to allow the LRC to become familiar with and explore the potential of all aspects of alternative measures now being considered,” the statement added.
“This exploration and assessment by the LRC would take place without prejudice to the position of either party.”
The NIB said it should be briefed by the LRC on the outcome of its work no later than next Monday, November 17th.
“In finalising its assessment to the NIB, the LRC should also take account of the progress being made in discussions continuing in parallel between [the union] Impact and the company.
“The body believes that solutions need to be urgently found to the current difficulties. In this regard, the Body notes that the parties are agreed that such solutions must offer long-term viability and stability for both the company and its workers.
“On receipt of the LRC’s assessment, the NIB will explore with the parties what assistance, if any, it can offer in achieving a final resolution of those issues where differences remain.”
Aer Lingus said it welcomed the continued assistance and support of the NIB in addressing the "seriously uncompetitive pay rates and productivity levels at the airline".
It said it would "fully cooperate" with the proposed framework to bring matters to a conclusion but that any alternative proposals "must be agreed before the deadline of November 30th and must deliver the €50 million in savings on staff costs.
Aer Lingus said the voluntary severance/early retiremend package it announced last week was "very generous and will not be improved upon".
"We have had a very positive response so far to this package," the company said.
"We have had positive discussions with impact cabin crew representative on staff productivity but we must finalise our discussions on future pay rates for cabin crew and address the issue of future pay escalation
"Any overall solution would be incomplete without a solution to address the untenable rate of pay escalation in all areas of the airline. Currently our employees' pay increases annually as a result of payment of annual increments together with national wage agreements," the company added.
It welcomed Siptu’s declaration that it had alternative proposals that would result in the annual savings that Aer Lingus believed could be achieved by outsourcing ground services.
"It is unfortunate that these proposals were not put to the company in the recent process," Aer Lingus said.