Differences between the two main unions at Aer Lingus over privatisation emerged last night with Impact moving away from industrial action over the issue.
A meeting of Impact members at Dublin airport produced no groundswell for industrial action, even though a privatisation process could happen as early as June.
While Siptu is conducting a ballot for industrial action, Impact members have shown no desire for similar action and the union's public statements have not even made reference to potential industrial action. The union is concentrating instead on extracting guarantees from management about job security and pay in a series of direct meetings.
At last night's meeting, there was strong support for the idea of the Government retaining a 25 per cent "golden share" in Aer Lingus. A union spokesman said members felt this was the best way to guarantee the national interest and prevent a complete takeover.
Impact has said that having no investment in the airline would be worse than a flotation. A senior union member said last night: "The status quo would be the worst of all worlds. If it's a choice between continued State ownership with no investment and a flotation, the second option would be preferable."
The relatively low numbers attending the meeting last night suggest there is little appetite at this point among the union's members for strike action. Impact represents about 1,800 staff at the airline - about 1,200 cabin crew, 450 pilots and the remainder middle managers.
The union has set five conditions before it would support a flotation. These cover investment, pensions, pay, profit-sharing and job security. The union is particularly anxious to see an expansion in the airline's fleet size.
"Any flotation would be worse than pointless if the funds raised do not translate into more and better planes," the union's deputy general secretary Shay Coady said last week. Ultimately, the union would wish the company to remain in public ownership.
In contrast Siptu has ruled out any support for privatisation, although it is prepared to listen to proposals to deal with the airline's looming pension deficit.
The airline's chief executive, Dermot Mannion, told The Irish Times last week that if a sale were to be conducted in June, a Cabinet decision would be needed before the end of March. With only one Cabinet meeting left this month that timetable is in danger of being missed.
Aer Lingus staff currently hold a 14.9 per cent share in the airline, which they would hope to maintain following any privatisation process. However this may prove difficult to achieve. The Government is most likely going to privatise the airline by issuing new shares - a move that would dilute existing shareholders like the staff group. Impact is anxious that some mechanism is found to maintain the staff shareholding at 14.9 per cent.
Various valuations for Aer Lingus have been suggested over recent months. A report by UBS/ AIB Capital Markets said the airline could be valued at €1 billion if conditions proved right. Based on this figure each staff member could stand to make a gain of about €43,000.
Impact is also seeking guarantees about staff numbers. It also wants a settlement on pilots' pay, which is currently being addressed in a long-established pay-determination process, before any flotation is agreed.
