Terms of employee offer delay TEAM sale

The proposed sale of TEAM Aer Lingus to FLS Aerospace has encountered new delays because of legal wrangles over the terms on …

The proposed sale of TEAM Aer Lingus to FLS Aerospace has encountered new delays because of legal wrangles over the terms on offer to employees for agreeing to the sale to the Danish company.

The issues raised are understood to be matters of clarification rather than substance. But they could add at least a week to the tortuous process of buying out the letters of guarantee possessed by 1,200 of the 1,550 employees.

Lawyers representing the workers and management will meet today to seek a resolution, under the chairmanship of Mr Gerard Durkan SC. He has chaired all discussions between unions and management so far.

The company is offering a package worth £54.6 million to the workers, in full and final settlement of any claims they have against Aer Lingus. It includes pension provisions, shares in Aer Lingus and even travel concessions with the airline. But there are understood to be other items not specified in letters sent out two weeks ago outlining terms to employees.

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It had been planned to send out forms yesterday, asking workers to indicate within a week their decision on the buy-out terms. But both sides felt legal representatives should clarify any outstanding issues for the two sides before the forms went out.

It is now thought next Monday or Tuesday will be the earliest the forms will be posted. The company hopes the package will secure the near 100 per cent acceptance rate needed to make the sale to FLS viable.

The unions have not formally recommended or rejected the terms. But they have been strongly criticised by craft unions, which represent most of the workforce.