Gerald Nash (Louth, Labour) | Oireachtas source

The most important point to remember is that Aer Lingus is a private company. It was privatised in 2006 in a scheme that Fianna Fáil, in government, had been working on since before the end of the last century. Both the parties now in government opposed that process at every stage. Back then, a minority stake was held onto by the State, with the sole purpose of blocking the sale or transfer of Heathrow Airport slots. This was the only reason given for holding on to any shares at all but the arrangement cobbled together by the last Government was badly flawed. Its deal did not give the Government any influence whatever on the actual use of the Heathrow Airport slots and it made no provision for the future of our airports. There was no protection against the State's shareholding simply being diluted below the magic percentage by new share issues. On this, as on so many other issues, we inherited a very weak hand when Fianna Fáil retired from the fray.

We can compare then with now. We have a very good deal that will protect the State's long-term transport interests, guard and grow jobs and boost infrastructural and regional investment. The State will receive approximately €335 million, which we will ring-fence for investment in transport and other "connectivity" projects. The State's veto is enormously strengthened so that we can, in future, acting unilaterally block any proposed disposal of the Heathrow Airport slots. The Aer Lingus name, brand and head office are protected, again indefinitely. The schedules to Heathrow Airport from Dublin, Cork and Shannon airports are protected for seven years. IAG has a significant growth plan for Dublin, Cork and Shannon airports in the long term.

I will speak briefly about the employment aspects. When the Government got the IAG offer, we asked for specific information on future employment prospects in Aer Lingus. The company told us it anticipates that by the end of 2016, approximately 150 net new jobs will be created in Ireland; this takes account of approximately 50 voluntary redundancies, primarily in back-office functions, which would happen on a phased basis through 2016. The company also told us that by 2020, Aer Lingus could create up to 635 highly skilled jobs, comprising pilots, cabin crew, engineers and other ground staff. IAG has confirmed that Aer Lingus will remain responsible for employee and industrial relations matters. In particular, any decision about a registered employment agreement in Aer Lingus will remain the responsibility of Aer Lingus management. That is the significance of the letter secured by my colleague, the Minister for Transport, from the Aer Lingus chief executive officer yesterday. The company has confirmed a very strong preference for direct labour and confirmed the preference and practice of avoiding compulsory redundancies.

They agree that registered employment agreements are mutually beneficial and safeguard the interests of employers and workers and they are committed to expansion of the scope of their REAs to include staff groups not covered by the current agreements. I expect and anticipate further communication from the company directly to me in this regard.

If there is time in tomorrow's schedule, I hope to move Second Stage of the Industrial Relations Amendment Bill 2015. The Bill reintroduces a mechanism for the registration of employment agreements at individual enterprise level. As the House is aware, there has been a gap in our law since May 2013 when the Supreme Court held that the old REA system was invalid. Of course, there can be no REA unless and until this legislation is passed. An REA is negotiated between a union and an employer. It can include provisions on both pay and conditions of employment generally. Once it is registered, the terms of an REA then become part of the contract of every worker which the agreement covers. As the effect of an REA is to adapt individual employment contracts, the benefit of an REA will survive any change of ownership. Under the Transfer of Undertakings Regulations 2003, where a company is transferred to new ownership, the transferor's rights and obligations under employment contracts are automatically transferred to the new owners. I hope, with the co-operation of the two Houses, that the Bill will pass into law by the summer.

The important point is that there is of course nothing to prevent employers and workers from starting their negotiations on an employment agreement right now with a view to having it registered as soon as the Bill becomes law. I encourage and expect them to do so. With a fair wind behind those talks, they could be concluded and an agreement could be registered before the proposed IAG sale is concluded. The reintroduction of REAs in a constitutionally robust manner will provide certainty around pay and conditions into the future and promote industrial peace. The Government is responsible for the legislation that will govern this negotiation process. We have secured a commitment that the company will engage in talks. Some people believe we should go further. They seem to think we could and should actually dictate what is in the final agreement. I want to be clear about this. As Minister of State with responsibility for labour affairs and as a Labour Party member, I am more than happy to walk the extra mile on behalf of our colleagues in the trade union movement. Neither I nor any Minister, however, can do the job for them. We cannot set out what is to be in the REA between Aer Lingus and its unions. That would not be good for the Government and it would certainly not be good for the unions. To be fair to the trade unions, I do not believe they want us to take their place at the negotiating table any more than they would want the Government to dictate what goes into the next REA coming down the line for Dublin Bus and Bus Éireann. An REA is a voluntary agreement negotiated between a business and its workforce through the relevant unions. Its content has to be settled between the parties themselves.

Aer Lingus has made its position clear to me and to colleagues in government. It is now time for the company to lift up the phone and engage directly with its workers. From what I have seen and heard, I am satisfied that there will be a new REA to protect employment and conditions of employment at Aer Lingus as a result of the work done by the Minister for Transport, Tourism and Sport and my other colleagues. I am also satisfied that Aer Lingus has fully taken on board our concerns over outsourcing of employment and compulsory redundancies and believe that these concerns will be addressed in full. This should be done through a meaningful industrial relations process, which I consider should commence immediately. Therefore, I have no hesitation in supporting the motion.

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