Wednesday, November 12, 2008

IBEC Describes Aer Lingus situation as 'grave'

Employers' group IBEC has described the situation at Aer Lingus as grave, as talks started at Government Buildings in a bid to avert industrial action at the airline.

IBEC director general Turlough O'Sullivan said that anyone with a head on their shoulders could see that Aer Lingus was seriously uncompetitive and needed 'urgent corrective action'. He told RTE News that from what he could see, the company's €74m cost-cutting package was the minimum required. He added that people have a choice between saving the airline and protecting the maximum number of jobs, or the demise of the airline.

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. 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.