The Minister for Public Enterprise, Ms O'Rourke moved quickly last night to allay union fears that major decisions on the future of Aer Lingus would be taken without them being fully consulted. At a meeting with the unions yesterday, Ms O'Rourke was told that more than 4,000 Aer Lingus and TEAM workers were extremely concerned at reports that the group was considering strategic alliances and the sale of its TEAM subsidiary while they were kept in the dark.
The general secretary of ICTU, Mr Peter Cassells, who led the deputation, told Ms O'Rourke: "We are all being gazumped by the media." He said afterwards that the delegation "conveyed to the Minister the anger and deep concern of the unions and staff, reading about their futures in the newspapers, while no consultation or information on future plans was being given to them. We demanded full consultation and she agreed to convey that to the other side".
Ms O'Rourke contacted the chairman of Aer Lingus, Mr Bernie Cahill, yesterday evening to discuss the issue. She also instructed the Secretary of the Department, Mr John Loughrey to raise the matter with the Aer Lingus chief executive, Mr Gary McGann. The Minister was careful not to take sides in the row last night, but she said she was concerned that both sides should not "drift back into an old fashioned conflictual relationship". She said she was heartened by the unions ready acceptance that some matters had to remain confidential for business reasons and her priority now was to "set the scene where partnership can work".
After speaking to Mr Cahill, she said that "he was very keen to move the process along with full consultation". Ms O'Rourke would not be drawn on what her personal preference was in terms of a strategic alliance or the disposal of TEAM. She said that her predecessor, Mr Alan Dukes, had given the airline a mandate to report back on the issues and she would await that report before making up her mind.
Aer Lingus has had discussions with a number of companies on a strategic alliance for TEAM and US company, BF Goodrich is seen as a front-runner. However, it must first reach an agreement with employees holding letters of comfort guaranteeing them the pay and conditions of Aer Lingus employees. Informal contacts between legal representatives on both sides are understood to have commenced on how much the employees might be paid to waive these commitments.
Last night, Aer Lingus said in a statement that it believed the consultation process was fundamental to achieving agreement on the steps needed to ensure a viable future for the Aer Lingus Group. A preliminary meeting held with the unions and staff representatives on October 31st had been part of the consultation process.
At the meeting, Aer Lingus had outlined the interest in TEAM from prospective investors. The time had not been ripe to go into details of the discussions but a commitment had been given that "as the proposals developed, the staff and their representatives would be kept fully briefed". With a by-election due shortly in north Co Dublin, where more than half of Aer Lingus employees live, it can be expected that the question of the airline's future will be handled with some sensitivity by the Department for Public Enterprise.
