Intervention by the Labour Relations Commission (LRC) has been decisive in resolving a dispute that threatened to halt Aer Lingus operations because of disagreement between pilots and management over future terms and conditions of employment at Belfast airport. The willingness of chief executive Dermot Mannion to show some flexibility in these matters reflects well on his managerial style, while reassuring the public that competition and costs remain in sharp focus. It is important to note that settlement terms were put together by the LRC, rather than negotiated directly between the pilots' representatives and management, and that Mr Mannion secured the bulk of his objectives.
As is invariably the case in mediation, there was some give and take. Formal negotiating rights were extended to the pilots' organisation, Ialpa, a branch of Impact, at Belfast and at any other external Aer Lingus hubs. There was also agreement on promotional arrangements and transfers. But pay and conditions at such bases will be on local terms with separate pension arrangements.
Aer Lingus exists in a hugely competitive environment. As a recently-privatised company, part-owned by the Government and by Ryanair, its management is under particular pressure. It has been a successful and profitable company. But that situation could change quickly. The Labour Court recognised this commercial reality last year when it accepted the need for management to generate labour saving costs of €20 million annually, through a Programme for Continuous Improvement (PCI). And it recommended that negotiations aimed at agreeing changes to existing work practices should take place.
Management has now reached agreement with pilots. And it is preparing to cut a deal with Impact cabin staff on the phasing in of new work practices. These are important advances. But the most difficult challenge lies ahead in securing co-operation from militant ground staff and baggage handlers represented by SIPTU. According to Mr Mannion, a hard core of trade union representatives do not accept the need for change, as endorsed by the Labour Court, and are thwarting necessary reforms. Two weeks ago, the company withheld payments due to workers pending agreement on PCI measures and it was, in turn, accused of industrial blackmail by SIPTU president Jack O'Connor.
The frustration and anger inherent in such exchanges is likely to come to a head in the near future. And, because of the extent of change required, it will take an immense effort to avoid a strike situation. In some areas, there are more supervisory grades than staff to be supervised. In particular circumstances, staff are paid for more hours than they actually work and baggage handlers may earn up to €110,000. Such anomalies will have to be addressed and resolved if Aer Lingus is to remain profitable and expand its operations through the addition of new planes and bases. It is in the interests of all concerned that this should occur through negotiation.