04/12/2009

Aer Lingus Announces Compulsory Redundancies

After protracted negotiations with the union representing its staff, Aer Lingus has announced no agreement has been made and that compulsory redundancies will follow.

In a statement released by the state sponsored airline last night, a spokesman said that despite exhaustive negotiations with all union groups, the company was "no closer to an acceptable deal".

"The company has reached the final hours of negotiations and its evaluation is that, as of today, it is too far from bridging the gap with the demands of pilots and cabin crew.

"Therefore, with immediate effect a taskforce will be activated to begin the process of planning compulsory redundancies/fleet reduction."

As the statement was published the Impact union issued a response saying it had put forward a proposal to Aer Lingus that achieved the cost-cutting measures specifically for cabin crew with the figure expected to save in the region of €20m.

The statement said: "[Aer Lingus] has alleged there remains a significant gap between the company and cabin crew on the issue of cost savings.

"However, as the statement was being issued by the company this afternoon, both parties were involved in ongoing discussions at the Labour Relations Commission.

"Both parties are still at the LRC.Cabin crew has issued a cost reduction proposal to the company which they remain confident can meet the airline's cost savings requirements.

"The timing of the airline's statement puts additional pressure on the members of the cabin crew branch, who remain engaged in a genuine effort to solve the current difficulties."

The board was expected to consider the proposals at its meeting later today but last night's statement by the airline appears to be definitive.

Negotiators representing cabin crew staff left the Labour Relations Commission at 1.30am this morning.

It is understood Irish Airline Pilots' Association, the union representing pilots, remained at the talks until 5am.

A further announcement is expected today.

(DW/BMcc)

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