Wednesday, October 08, 2008

SIPTU Moves To Prevent Aer Lingus Cuts

Legislation introduced after the Irish Ferries controversy is being examined by Siptu with a view to invoking it in its fight against large-scale cuts at Aer Lingus, according to the Irish Times.

Unions at the airline are opposed to a plan to cut 1,500 jobs through redundancy or outsourcing as part of a €74 million cost-saving plan announced on Monday. The airline employs just over 4,000. The airline’s plans include outsourcing ground operations, cargo and catering services at Dublin and ground operations at Cork. Up to 280 jobs could be lost at Shannon, where ground and cargo services will be outsourced and cabin crews axed.

Siptu sources said that the union was studying the potential to use, for the first time in Irish industrial relations, the Protection of Employment (Exceptional Collective Redundancies and Related Matters) legislation which came into force last year. The legislation allows for an independent panel to consider whether redundancies in a company are actually genuine redundancies as opposed to situations where existing workers are replaced by lower-paid staff.

Meanwhile, commenting on the cost cutting plan Minister of State and Clare T.D. Tony Killeen, stated, “The privatisation of Aer Lingus included an agreement with Unions that no services would be outsourced prior to 2010. It is now evident why Aer Lingus chose to cease operating its Shannon to London-Heathrow service rather than address cost-based issues."

He continued, "Aer Lingus does not appear to have much regard for agreements that it makes with its workers. Consequently, I have made contact with Minister for Finance Brian Lenihan and Minister for Transport Noel Dempsey regarding the airline’s cost cutting plan. Meanwhile, I have referred to Ms. Mary Coughlan T.D., Tánaiste and Minister for Enterprise, Trade and Employment in relation to the Aer Lingus workers’ future job prospects. I have also asked Minister for Labour Affairs Billy Kelleher TD to ensure that all of the worker’s statutory entitlements are delivered on."

"Once Aer Lingus has finally addressed cost-based issues I believe that they should consider reinstating the Shannon-Heathrow service. There remains a strong business case for doing so while such a move would also consolidate the airline’s future at Shannon Airport", added the Kilnaboy TD.