The Aer Lingus board has tonight decided to go ahead unilaterally with its plans to cut €97m worth of costs from the airline. The move follows the failure of management and unions at the company to reach agreement on alternative plans during seven weeks of negotiations, most recently at the Labour Relations Commission.
Announcing the decision to the media at Dublin airport this evening, Aer Lingus chief executive Christoph Mueller said the decision would most likely lead to further redundancies, possibly compulsory, over and above the 676 voluntary lay-offs being sought under the draft plan.
It is understood this extra figure would run into hundreds. He said the negotiations had come so close to agreement in some areas that they were almost ready for signature. He said the company appreciated the effort from employees which was constructive throughout the talks.
But Mr Mueller said the exceptions were pilots and cabin crew, with whom agreement was not as close. He said the savings offered by pilots were too little, were not sustainable and were more like a temporary loan. He also said there were also demands made in relation to shareholding which made the price too high.
Mr Mueller said that, as a result, the board had taken the decision to try and achieve the independence of Aer Lingus in a different way. He said there was over-capacity in the airline, and as a result more capacity would have to be taken out and more aircraft grounded.
The Aer Lingus chief said the board would decide on further steps on Friday, but it was likely further aircraft would be grounded towards the end of this year. He said the capacity taken out would most likely be long and short haul. But he said there would be no impact on customers during the reduction.
Mr Mueller did not rule out further talks, however, saying that what had been achieved could be used as a basis in future. But he said equal treatment of all employees meant that all employees, including flying staff, must agree.
