AER LINGUS has indicated to its trade union representatives that it does not intend to use third-party mediators to agree changes in pay and work practices as part of the latest round of cost-cutting measures at the airline.
Sources close to the airline said this would include the Labour Court and the Labour Relations Commission.
This would represent a major step change in industrial relations policy at Aer Lingus and place it on a collision course with its three trade union groups. It also has the potential to derail the national pay talks.
In addition, it would place the Government in a difficult position, given that it owns 25 per cent of the airline and would want to see any cost-cutting measures agreed with the airline's 4,600 staff.
Aer Lingus's senior executives are believed to be working on a plan to cut up to €100 million from its cost base and feel that dealing with the State's industrial relations machinery would result in their restructuring plan becoming bogged down.
The previous PCI-07 restructuring plan, which was aimed at achieving cost savings of €20 million a year, has still to be fully implemented nine months after its deadline expired.
A spokesman for Siptu, the country's largest trade union, said management at the airline had indicated that it did not want the involvement of any third parties.
Instead, it wants all negotiations to take place internally.
Reports over the weekend suggested that Aer Lingus is seeking to outsource about 1,300 ground staff at Irish airports and is considering hiring cabin crew from the United States to operate its transatlantic routes. The airline is believed to have looked at how other airlines operate expenses for staff involved in overnight stays.
Aer Lingus is thought to want to introduce these changes in early 2009 and staff could be given the option of transferring to a new service provider or taking a severance package.
The airline is also believed to be seeking a reduction in airport charges from Shannon airport in return for retaining transatlantic services there.
Aer Lingus declined to comment on these reports. A spokesman said no restructuring plan had yet been agreed. "We are still working towards unveiling the plan later this month," said Enda Corneille, Aer Lingus's director of corporate affairs. "The staff will be the first people to hear about it."
Aer Lingus is due to hold a board meeting next Friday, at an off site location, to consider the restructuring proposals.
A spokesman for Siptu said senior management had signalled that it was seeking board approval to outsource ground operations and to recruit cabin crew in north America for transatlantic routes.
Aer Lingus made a loss of €22.3 million in the first six months of this year and chief executive Dermot Mannion warned that losses in 2009 could reach €100 million.