A trade union body representing workers across Aer Lingus owner International Airlines Group (IAG) could intervene in plans to cut 500 jobs from the Irish carrier.
Aer Lingus is seeking to reduce costs to boost margins and guarantee future investment in the business from IAG.
However, IAG’s European Works Council (EWC), which includes union officials from across the group, says it should be consulted on the planned shake-up at Aer Lingus, according to a letter from the Irish Airline Pilots’ Association (Ialpa) to management.
The works council has asked IAG management to “immediately pause” the Aer Lingus consultation process until the group has met its own obligations to consult EWC, the letter notes.
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The works council also reserves all its legal rights in respect of any failure by IAG to comply with those obligations, it adds.
However, Aer Lingus maintains that it has no obligation to “inform or consult the European Works Council” as its proposals are not transnational and only affect the airline’s Irish-based staff.
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“Aer Lingus is conducting the consultation in line with its statutory obligations under the relevant legislation,” said the company.
The works council bring together representatives of staff and management in multinational businesses in the EU to discuss transnational issues, including restructuring across states in the bloc and the European Economic Area.
IAG is a Spanish-domiciled group, whose other airlines include Iberia and Vueling. It also has a substantial presence in the UK, where it owns British Airways.
The works councils’ rights focus mostly on information and consultation.
It cannot orchestrate or organise industrial action but must be allowed contribute when companies are deciding on steps with wide-ranging financial and economic implications.
IAG wants Aer Lingus to boost operating margins – the difference between a business’s costs and revenues – to between 12 and 15 per cent from about 11 per cent now.
The Irish airline must hit this target before IAG will provide it with new aircraft.
In 2023, the group pledged to investors that it would maintain operating margins in this range to avoid the up-and-down swings in profitability that are a feature of the airline business.
The letter from Ialpa president Capt Daniel Langan to Aer Lingus chief people officer Tara Flynn states that the airline has several times tied pilots’ terms and conditions to fleet investment and acquisition.
Aircraft acquisition is entirely a matter for executive management, it says. “Pilots have no responsibility for, nor influence over, those decisions,” the letter adds.
Aer Lingus faces rising costs and increased competition, notably on its transatlantic routes, while it seeks to increase margins.
The airline has pledged to minimise redundancies where possible, but believes it may have to cut up to 70 pilots, 140 cabin crew and 290 office staff from its workforce.
