Oireachtas Joint and Select Committees

Friday, 24 July 2020

Special Committee on Covid-19 Response

Covid-19: Impact on International Travel

Mr. Neil McGowan:

I am joined by Ms Karan O’Loughlin who is the divisional organiser in SIPTU for the transport, energy, aviation and construction division.

The Covid-19 pandemic has had an unprecedented and crippling impact on the aviation sector and the workers who rely on the industry to earn a living. Flights and passenger numbers have collapsed and are between 90% to 99% down on what one would expect. Even with the assistance of the temporary wage subsidy scheme, TWSS, workers in aviation have suffered a cut in wages ranging from 20% to 70%. Hundreds of aviation workers are on temporary layoff and are relying solely on State supports. The outlook for the aviation sector in the short to medium term is bleak. Any possibility of summer green shoots have failed to materialise and workers are now facing into a long winter. Despite a dramatic drop in earnings, workers in aviation continued to keep essential supply chains going through the darkest days of the pandemic. SIPTU members in the airlines, ground handlers and airport workers played a critical front-line role in keeping our airports open for essential deliveries of PPE and medical supplies.

In order to ensure Ireland has an aviation industry post-Covid-19 a number of actions need to be immediately taken by the Government. SIPTU recommends the extension of the TWSS for the aviation sector until summer 2021 to ensure that employment is maintained in the industry. The extension of the TWSS must be made conditional on several binding commitments from the employers. These include no worker being made redundant on a compulsory basis while the employer is benefiting from the TWSS. This omission was a fatal error on the part of Government when the scheme was introduced given that these companies were benefiting from State support to keep people employed. The purpose of the scheme was to maintain the link between the employee and the employer so that when we came out the far end of the pandemic we would have an industry to try to build upon. The fact that employers can and have made people redundant on a compulsory basis is simply unacceptable. We are also seeking a binding commitment from employers that while the employer is benefiting from the TWSS no worker will suffer a permanent reduction in any terms and conditions of employment unless by collective agreement. We also ask that workers, where they wish, can make contributions to pension schemes while on the TWSS. Currently, workers are unable to make the employee contribution to their pension schemes from the TWSS. The longer this goes on, the more we will be storing up a pension problem. Many aviation workers have suffered dramatic cuts in their pensions over the last decade and have moved from defined-benefit schemes into defined-contribution schemes.

SIPTU recommends that Shannon Airport be returned to the management of the DAA. The separation of Shannon Airport has not been a success and this was apparent prior to the Covid crisis.

The Covid-19 crisis has brought into question the long-term viability of the airport. Given its absolute importance to the region's economy, we believe it must be brought back into the management of the DAA. When one compares the experience of Cork Airport with that of Shannon Airport since separation, it is quite stark that last year Cork was the fastest-growing airport in the country while Shannon has failed to progress and its viability is seriously in question at the moment.

SIPTU also recommends the introduction of a rapid testing facility for all airport workers. By the very nature of their work, airport workers are brought into close contact with people from across the world as they enter and leave the country. It is essential that a rapid testing facility be introduced in all the airports but particularly so in Dublin Airport in the short term. It is a serious deficit. We are calling for a review of the non-State airport sector, namely the regional airports such as Kerry Airport, Knock Airport and Donegal Airport. If the State is to give State aid to those airports then it should take an ownership share in them.

SIPTU believes the public health advice that continues to restrict international travel must be followed. Where, however, there is a corresponding impact on employment then the level of payment of the wage subsidy scheme should be established to ensure that workers' net take home pay is at a level that allows them to meet their financial obligations.

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