Aer Lingus in redundancies warning
Monday, 30 November 2009 22:33
Aer Lingus is warning that it will proceed with cost-cutting through compulsory redundancies and the reduction of its fleet, if agreement on achieving savings is not reached with unions tonight.
Talks between the two sides resumed at the Labour Relations Commission this afternoon.
Aer Lingus is expected to lose around €100m this year. The objective of the cost cutting plan is to reduce operating costs by €97m by the end of 2011. €74m of that is to come from a reduction in staff costs.
The company's plan involves cutting 676 jobs through voluntary redundancy, as well as the introduction of pay cuts and further outsourcing.
The airline announced its plans in October. Since then intensive discussions have been taking place with unions, but no agreement has been reached.
The National Implementation Body got involved in the process earlier this month, and urged all sides to attend talks at the Labour Relations Commission. The NIB is due to review progress in those talks some time today or tonight.
Sources at the airline have expressed concern that alternative proposals put forward by the unions would not bring about the required savings, and would not deliver the savings immediately.
Union sources reject this, and are opposing the company's plans for pay cuts, which they say would have a knock-on effect for effect variable pay, allowances and pensions.
