Mr. Owen Reidy:

I thank the joint committee for giving us the opportunity to share our analysis of the current position, particularly of what the Government's position, as a 25.1% shareholder, should be. I am responsible for the energy, construction, transport and aviation sectors in the union. The union represents over 1,500 workers in the company, across Dublin, Cork and Shannon in a range of categories, including baggage handlers, cleaners, caterers, cargo agents, clerical support staff, ground staff, middle managers and others. In the past decade, since the part privatisation of the company, SIPTU members have engaged in quite a number of restructuring and cost saving programmes. They have come to the understanding the industry requires a workforce that is agile and flexible, not only to meet customer requirements but also those of an ever-changing industry.

In particular, they have seen pay cuts, pay freezes and significant cuts to their pensions. Effectively, they have had to do much more with much less.

In recent years the union concluded a number of important agreements with Aer Lingus management that negated and addressed its views on the need to outsource large swathes of the workforce. We did this by reducing the cost base in a significant way, working with Aer Lingus management to preserve and continue decent, direct and sustainable employment. This model has allowed Aer Lingus to retain complete control over all of its operations, while continuing to grow the business, passenger numbers, revenue and, in recent years, profits. It is fair to say the direct labour model in Aer Lingus has worked. Given the flexible nature of our agreements and the manner in which we and management work, the model continues to give safety and security to workers and the employer.

On the possible sale of the company and the stance the Government should adopt as the second largest shareholder, our position is simple and clear. We have called on the Government to block any sale of its shareholding in the company unless clear and tangible guarantees are secured from IAG in this instance or any other possible suitor. The guarantees must cover a number of issues, the first of which is connectivity, something many people have mentioned. As an open market island economy on the periphery of Europe but also at its gateway, it is essential that access to and from other markets continue and develop. This underpins tens of thousands of jobs for employees, many of whom are union members and work in foreign direct investment, FDI, multinationals and other sectors, including tourism.

Second, the Heathrow Airport slots Mr. Worth mentioned have been the subject of much discussion. It is clear that they are of critical value to the company under a number of headings, particularly given the nature of supply and demand and the fact that Heathrow is one of the busiest airports in the world and operating at nearly full capacity.

Third, the transatlantic routes have played a large role in the development of Aer Lingus and are a significant part of its operation. They are a major source of revenue and, with US immigration pre-clearance services operating in this jurisdiction, comprise a key element of the company's strategic growth prospects.

Each of these three issues must be a core factor that the Government will consider when making any decision on its shareholding in the company, taking into account their role in balanced regional development, maintaining key exporting industries and businesses in the economy and underpinning thousands of jobs. The Government must also factor in the maintenance of the current level of decent and sustainable direct employment within Aer Lingus across the three airports in Ireland. It must receive cast iron guarantees from any party seeking to buy the airline. The workers have made significant commitments and sacrifices to make Aer Lingus the successful and profitable airline that it is today. These commitments must be reciprocated by the current management and any prospective owner and must be secured before the Government would even consider selling its 25.11% share of the airline.

Our position should not be characterised as conservative, negative or merely seeking to protect the statusquoas some of our detractors seek to infer. Our position is grounded in reality and is pragmatic and prudent. We want to ensure the Government uses its shareholding for what we were told was its purpose, that is, to act in the strategic interests of the State, its economy and, crucially, its people, including the 3,900 workers employed in Aer Lingus, as well as the tens of thousands of employees who work in a range of sectors and whose industries and livelihoods could be impacted on negatively without clear and tangible guarantees. Were the Government to do anything less, it would be a dereliction of duty.