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Aer Lingus gives unions a two-week deadline

Aer Lingus - Warns that cost cutting must be done
Aer Lingus - Warns that cost cutting must be done

Aer Lingus has warned SIPTU that it will unilaterally introduce cost cutting measures at the airline if agreement on a restructuring programme is not reached in two weeks time.

Meanwhile the craft group of unions has pulled out of the talks on cost savings this afternoon.

Management and unions at Aer Lingus have been engaged in protracted negotiations for months in a bid to secure staff cost savings of €20m a year - and have already missed a number of deadlines for reaching agremeent.

In a letter to SIPTU today, Aer Lingus Deputy Chief Executive Niall Walsh said the case for cost cutting at the airline has been established, and that the company is facing a challenging commercial environment, with weakening economic conditions and continued high fuel charges.

He said that the urgency to agree, implement and realise savings is more and more pressing with every passing day.

So it is essential the agreement be concluded with two weeks.

Mr Walsh says that if an agreement is not reached in two weeks, management will have no option but to commence implementation of the so called 'Flexibility and Mobility Agenda' from Monday, 25 February.

Up to now, the company has been refusing to pay outstanding wage increases due under the 'Towards 2016' national agreement.

However, Mr Walsh said that following satisfactory implementation of the cost cutting measures, all outstanding and forthcoming pay increases will be paid.

Mr Walsh proposed a schedule of meetings over the next seven days, and said the management side is available 'day and night, seven days a to ensure that a final conclusion to the talks is achieved by Friday 22 February'.

SIPTU has responded to Mr Walsh's letter, reiterating its commitment to negotiations, and blaming the airline for delays in progressing matters.

Branch Organiser Teresa Hannick said it was disingenous for the company to impose a deadline and timetable that had neither been discussed nor agreed.

She also warned that SIPTU would not accept the company's unilateral implementation of change to current terms and conditions for members without agreement.  She said that should this occur, it would be viewed as a provocative action.

Meanwhile, the Aer Lingus Craft Group of Trade Unions  representing around 180 engineering staff has pulled out of the talks on cost savings.

The Chairman of the Craft Group Brian Gormley described the talks as charade. He accused the airline of engaging in stunts and mythical deadlines to delay paying wage increases due under Towards 2016.  He said the union plans to refer the matter to the Labour Court.