Mr. Owen Reidy:

I thank the Chairman for the opportunity to appear before the joint committee today. As I appreciate that members have read the submission, I will not go through that. However, I wish to make two key fundamental points on behalf of SIPTU and our union represents workers and members in both Shannon Development and the airport. While not wishing to put a dampener on things, we have serious reservations and concerns about this prospect actually flying and working because we believe that ultimately, the success of this project is based primarily on planned growth on the airport site and on passenger numbers. In this context, the Irish Congress of Trade Unions conducted an independent appraisal of the business plan of the new entity and we are particularly concerned, given the current economic climate in which we operate, that the projected or planned growth from 1.39 million passengers in November 2012 to 2.5 million passengers by 2021 is based on assumptions that do not stand up to scrutiny. We are concerned that if this does not work, the overall project may suffer and fail, notwithstanding the fact that we wish it well. Should that arise, we would be concerned about any implications for the workers concerned in both entities.

The second fundamental point relates to the heads of the Bill and I will confine my comments to the areas concerning the protection of employees because obviously that is our fundamental objective. In common with Deputy Dooley, the first question or concern we had pertained to the Bill's complete lack of reference to or mention of Shannon Heritage. Obviously we have an interest in those workers and in the product Shannon Heritage has and we wish to ensure we get some assurances on its future viability and regarding the employees concerned. In respect of heads 18 and 22 regarding the issue of directors and worker directors, obviously we come from a perspective in which we support fully industrial democracy. We think that worker directors have made a fundamental contribution in a range of commercial semi-State companies and other entities and they play an important role. They are not senior shop stewards at the board but they do bring the workers' voice to the board and they bring something to the overall strategic guidance and leadership of any entity.

We have some questions, under heads 18 and 22, on what is intended for worker directors. Will they come from the group? Will they be involved in the subsidiary? Obviously we support as much worker participation as possible at board level, be it on the group or subsidiary companies.

Head 25 refers to superannuation schemes, which are another area of interest and serious concern to us. It is important to remember that the project attempts to merge together two organisations with different cultures, histories and practices. It is also important to remember that the workers at Shannon Airport are commercial semi-State employees and part of a pension scheme called the Irish Aviation Superannuation Scheme, IASS. I am sure the politicians from the region are familiar with the scheme. We are involved, with our colleague unions, in major comprehensive negotiations with the employers on that scheme, one of which is Shannon Airport. We are trying to ensure the scheme's inherent problematic issues are fixed and that proper pension provision is available to all of the employees in the scheme currently and in the future. It is critical and essential that the current pension conditions of Shannon Airport staff are followed through in legislation and that whatever results from the discussions is applied to the employees who wish to transfer. Likewise, the staff of Shannon Development are public servants and part of the general public service pension scheme arrangements and criteria. It is critical that the arrangements they enjoy are maintained.

Both the public servants in Shannon Development and the workers in Shannon Airport have borne the brunt of major restructuring, pay cuts and all that goes with it, including the Croke Park and Haddington Road agreements. Also, the Shannon Airport side had a cost recovery programme that was negotiated with the Dublin Airport Authority that affected workers in Shannon, Cork and Dublin airports. We believe the link is critical. There is some comfort from the suggestion, in general terms, that those things will be looked after in the Bill, but it is important to cite them here today. It is also important to ask, if this does not work, what happens next. We are left with a product and workers from both entities who must have a future. We want to ensure a sustainable and viable future for them and the interests they serve in the mid-west.