Passengers on Aer Lingus flights face the threat of future disruption because of resistance by SIPTU to the possible privatisation of the airline and to the details of a three-year restructuring plan.
Work stoppages planned for tomorrow were called off because of a decision by the company's chief executive, Mr Willie Walsh, to meet with union officials. But the trade union appears determined to block acceptance of a generous redundancy package by its own members before September 14th.
Timing in relation to these issues is hugely important. The Government is to receive an analysis from its financial advisers, Goldman Sachs, on the strategic options facing Aer Lingus by next Tuesday. And a Cabinet sub committee, headed by the Taoiseach, Mr Ahern, is expected to take a decision on the future of the semi-State company before the end of September. At the same time, Mr Walsh and his management team have set a deadline of September 14th for the receipt of voluntary redundancy applications and, should that exercise prove to be successful, the position of SIPTU within the company would be considerably weakened.
The Aer Lingus management has exhibited flair and imagination as it moves the airline towards the cheaper, more profitable end of the market, with a growing emphasis on transatlantic traffic. But the success of the company has also depended on the hard work and co-operation of workers. The open-handed redundancy terms originally demanded by SIPTU in advance of restructuring are now being largely met by management at an estimated cost of €80million. And those workers who avail of the offer can still retain ownership of shares in Aer Lingus under an Employee Share Ownership Trust.
Mr Walsh and two of his colleagues have signalled a desire to engage in a management buy-out if the Government decides to sell Aer Lingus. But any sale arrangement would have to go to public tender and be transparent. That potential conflict of interest has been seized upon by SIPTU as justification for rejecting any out-sourcing of the company's catering and baggage handling sections, along with other changes that would lead to the loss of 1,325 jobs. The company's restructuring plan was, however, adopted by the board of Aer Lingus some weeks ago. And the Government, as the sole shareholder, has given no indication that it objects to the direction the company is taking.
The disruptive tactics threatened by SIPTU are unlikely to cause any significant change in management plans. And the trade union should not be allowed to dictate the timing of voluntary redundancy terms. There are other mechanisms, such as the Labour Relations Commission and the National Implementation Body, under the national agreement "Sustaining Progress", that can be used by SIPTU to ventilate its concerns over restructuring and privatisation. The travelling public, which helped to found and fund the national airline through its taxes should not have to suffer.