The threat of industrial action at Aer Lingus appears to have receded following agreement between management and unions in securing cost savings of about €10 million. Martin Wall, Industry Correspondent, reports.
However, the National Implementation Body (NIB), the main troubleshooting mechanism under social partnership, which brokered the deal, recommended further talks early in the New Year.
Aer Lingus has sought cost savings of about €20 million under a controversial plan which almost led to industrial action several weeks ago. The NIB has been meeting with management and unions in recent weeks in a bid to finalise an overall deal.
It said last night that research carried out by independent advisers Grant Thornton confirmed that there was justification for the labour cost savings sought by the company.
In a statement, the implementation body said that negotiations on change and talks in relation to Shannon airport had resulted in Aer Lingus and Siptu identifying savings of some €10 million. The NIB indicated that these savings would be generated through mobility and more flexible arrangements.
It recommended that further talks to finalise arrangements to generate these savings should be concluded by the end of January. The remaining €10 million in savings will be sought from other grades at the airline, including pilots, cabin crew and craft workers.
The implementation body recommended that the bulk of negotiations in relation to savings to be generated by these groups should also be completed by the end of January.
The NIB said that the crucial factor, from a competitiveness viewpoint, was that unit labour costs should be consistent with airline industry norms and acceptable employment standards generally.
The NIB noted the airline's position that a pay freeze would remain in place until the cost savings were realised, and that the unions had argued this measure represented a breach of the national agreement, Towards 2016.
Siptu said last night that it had referred the pay freeze issue to the Labour Court and the Labour Relations Commission. It said the NIB statement would be considered by shop stewards in early January.
Siptu national industrial secretary Michael Halpenny said that the implementation body's proposals "appear to vindicate the union's view that there were always alternative ways of dealing with the issue of cost savings".