The Government has confirmed that it will sell a majority stake in Aer Lingus.
In a statement this afternoon, Transport Minister Martin Cullen said the Government would retain a shareholding of at least 25.1%. He said the Government's corporate advisers had been instructed to complete the sale transaction as soon as possible, taking into account market conditions and stock exchange regulations.
He added that Ministers had told the company to negotiate with trade unions on a package of measures, including job security and pensions. The Minister said he was confident that the concerns of staff could be addressed and the future of the company could be secured.
Minister Cullen said the Government was open to a pensions solution which would include an upfront investment from the sale proceeds and increased contributions from the airline and its workers.
Aer Lingus chief executive Dermot Mannion welcomed the decision, but he said there was 'much work to be done' in consulting staff and unions in order to deal with issues of concern.
SIPTU's Michael Halpenny said the Government statement was short on detail and high on aspiration. But he described it as 'a very bad day' for Aer Lingus workers and the country. 'Once again the Minister has mandated Aer Lingus to resolve the key issues raised by the trade unions during the consultation process, but our experience to date has been that management are dragging their heels in addressing the issues of concern to our members,' he said.
He said that if management at Aer Lingus went ahead with privatisation without sorting out SIPTU members' concerns, then they ran the risk of industrial action.
