Talks between the Government and the Irish Congress of Trade Unions over an employee share ownership plan at Aer Lingus broke up last night without agreement.
The Government and the Department of Finance want no more than 14.9 per cent granted to workers at the airline, which is seeking more than 2,000 redundancies.
But senior trade unionists have claimed that up to 30 per cent of the company should be given to staff in return for pay increases not granted under the Programme for Prosperity and Fairness.
It is thought Aer Lingus has an open mind on the scale of the share option plan, which will form part of a redundancy package to be put to a vote of staff. But the Government is said to be reluctant to budge because it fears setting a new benchmark for share plans at State companies.
The limit in previous schemes was 14.9 per cent and observers say any increase would have serious implications for likely privatisations at the ESB and Bord Gβis.
The talks are expected to reconvene today or tomorrow.
