Siptu has said it will not enter into discussions on a controversial €20 million cost-saving plan at Aer Lingus until a pay freeze for staff put in place by the airline is lifted.
Aer Lingus chief executive Dermot Mannion signalled yesterday that having secured a deal with pilots on its new Belfast base, it would be engaging with the unions on its cost-saving initiatives in the days ahead.
The company has told investors that the €20 million cost savings will be realised next year and it wants a deal in place shortly.
However, a spokesman for Siptu said it had told the airline that its members were not going to be blackmailed into concessions on the cost-saving programme by the pay freeze.
The spokesman for Siptu, which represents baggage handlers, ground operation and catering staff at Aer Lingus, said that the issue could be addressed through the National Implementation Body (NIB) or by some process under its aegis.
Impact, which represents pilots and cabin crew, has already sought the intervention of the NIB, the main trouble-shooting mechanism under social partnership, in the row over the pay freeze.
Earlier this month, Aer Lingus said that increases of 5 per cent due under the Towards 2016 agreement, as well as 2.5 per cent in increments due to staff, would not be paid until the cost-cutting plan was put in place.
The introduction of the pay freeze was aimed at forcing the pace on the introduction of the plan, known as PCI-07.
The company said there had been no tangible progress made over recent months in talks with unions on the plan.
Aer Lingus has argued that its staff costs in some areas are completely out of line with those of its competitors.
Siptu national industrial secretary Michael Halpenny said yesterday that it had told the company that it had put itself beyond the pale of the national agreement by imposing the pay freeze.
He said the union had told management it was not going to allow it to abandon the architecture of the national agreement which had served the airline well.
Mr Mannion said yesterday that that after securing a deal with pilots on its new Belfast base it would now be entering into further engagements on the cost-saving initiatives.
He said that he was confident that management "will get reciprocal response from staff in other areas" without causing further uncertainty for passengers.
Under the PCI reforms, the airline is seeking to achieve greater competitiveness by introducing greater flexibility in working hours, improvement in rostering and changes in annual leave and day-in-lieu arrangements in some areas. It is also targeting existing overtime arrangements.
Mr Mannion described as "a landmark development" the agreement with pilots on the establishment of the Belfast base.
He said it allowed the company to "internationalise the Aer Lingus brand".
