Aer Lingus unions seek pay rise

Unions at Aer Lingus have tabled a fresh pay claim as the new chief executive Dermot Mannion seeks to get the airline's cost …

Unions at Aer Lingus have tabled a fresh pay claim as the new chief executive Dermot Mannion seeks to get the airline's cost reduction plan back on track.

Siptu, the largest union at the airline with over 2,000 members, says it wants the terms of the claim agreed before it signs off on any cost cutting plan.

The company, which has already warned about falling operating profits for 2004, has agreed to put some costings on the fresh pay claim and a union-management meeting is scheduled to take place next week .

The terms of the claim include:

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* The fast tracking of the final phase of Sustaining Progress. Workers are due to get 2.5 per cent rise in January, but the Aer Lingus unions want this brought forward to now.

* An increase in increments for all staff which should result in additional payments of between €700 and €1,200 per worker a year. This increase was frozen by the company back in 2002.

* A higher pay scale for long serving members of staff.

* The re-instatement of the staff welfare fund which was withdrawn several years ago. This contributory fund helped pay for medical expenses incurred by the airline's staff.

* The claim also calls for negotiations over staff travel concessions to be concluded. The unions also want management to pay more towards the pension fund at the airline.

This pension fund, Irish Airlines General Employees Superannuation Scheme, is not in deficit officially, but with the number of contributing members shrinking unions want management to make a larger contribution in future.

Financial consultants Mercers are currently reviewing the scheme. The unions are also looking for fresh training funds and a regrading of several positions.

It is understood another union at the airline, the Technical Electrical and Engineering Union, is also supporting the overall thrust of the pay claim. The company for its part has so far reserved its position.

Aer Lingus Siptu representative Christy McQuillan said yesterday Mr Mannion needed to restore trust at the airline following the leaking of a 2004 memo which suggested ways to force staff to leave the company. It is understood Mr Mannion's office has requested a meeting with unions to discuss a range of issues.

Unions claim practices such as giving certain staff unsociable hours in an attempt to force them from the company were continuing until recently.

However the chairman of the airline John Sharman has apologised for any hurt caused by the memo.

For his part Mr Mannion yesterday completed his first day at the airline meeting staff and holding meetings with senior management. In a letter to staff Mr Mannion said it was likely there would be difficult days ahead.

"It is a matter of public record that 2005 to date has been tough. While short haul is going in the right direction the business is behind target in relation to the cost-savings programme. To move on and achieve the airline's true potential, we need also to get going on long haul where the lack of a 'fly anywhere' agreement at present is a major constraint on us operating any new long-haul routes," he told staff.

"These challenges are no more daunting than those that you and the company have experienced and overcome over the past number of years. I am confident that we can face up to and work them through in a continuation of the very positive and productive approach that you and my senior management colleagues have taken over recent months," he added.