Aer Lingus has defended its operation of the Government's wage subsidy schemes and insisted that all payments received from the state under the Temporary Wage Subsidy Scheme were passed on to staff in their entirety.
In a statement this evening, the airline confirmed that it had implemented the Temporary Wage Subsidy Scheme (TWSS) and its replacement, the Employment Wage Subsidy Scheme (EWSS) in accordance with the guidance provided by the Department of Employment and Social Protection and the Revenue Commissioners, adding: "Any suggestion to the contrary is entirely inaccurate."
Today's statement follows claims from numerous staff members who have taken pay cuts of up to 70% and are working part-time, that the airline was blocking them from receiving social welfare top-ups for the days on which they were not working.
They argued that when the TWSS was replaced by the EWSS on 1 September, their pay fell significantly, leaving many in serious hardship – but that the airline refused to sign the forms required for them to claim social welfare.
The airline had alleged that it was receiving conflicting messages from the Department of Social Protection and the Revenue Commissioners as to whether staff were entitled to apply for income support.
However, in a video message to staff this evening, Director of HR Operations Carmel Walsh confirmed that the airline has engaged with the Department over the last number of days in relation to the staff complaints.
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She said: "Following a constructive and comprehensive discussion earlier today with Senior Representatives from the Department of Employment Affairs and Social Protection, we can confirm that employees are eligible to apply for applicable jobseeker supports for days of unemployment, even when Aer Lingus is claiming the Employment Wage Subsidy Scheme. "
Ms Walsh said Aer Lingus is continuing to engage with the Department, which will provide guidance to employees on the relevant process to follow to apply for the social welfare payments – including the specific steps to follow depending on the status of any current application.
Some staff had argued that they should be entitled to income support for the period when they were on the TWSS.
Ms Walsh told staff: "For any claims prior to the EWSS you should contact the Department of Employment Affairs and Social Protection directly."
She reiterated her acknowledgement of the "extremely difficult and challenging time" facing everyone in Aer Lingus at present and thanked staff for their patience as the airline worked to get clarity.
It remains unclear whether staff who had their pay and hours cut while receiving TWSS subsidies were entitled to social welfare income supports for the days they were not working.
The Revenue Commissioners insisted that matters relating to income support were "entirely" a matter for the Department of Social Protection.
In a statement to RTÉ, the Revenue said that under TWSS, employers were not required to pro rata the subsidy based on whether the employee was temporarily laid off or working full or part-time.
They said no distinction was made about the subsidy amount based on whether business had closed due to Covid restrictions, or had kept trading, with employees continuing to work part-time or full-time as before the pandemic.
They said tapering or restriction of the subsidy only applied in cases where the gross pay paid by the employer and reported on their payroll submission, plus the wage subsidy amount, exceeded the Average Revenue Net Weekly Pay on which the TWSS subsidy was based.
The Revenue added: "The questions of an individual's entitlements and rights in an employment context, what wages an employer may be legally obliged to pay employees in respect of hours worked and an employer's capacity to pay wages to employees in the light of the impact of the Covid-19 pandemic on the employer's business are all matters that are outside the remit of the TWSS."
It concluded: "Finally, matters relating to additional income supports for days where an individual is unemployed, is entirely a matter for the Department of Employment Affairs and Social Protection, and not a matter for Revenue."
