Dáil debates

Thursday, 28 May 2015

Aer Lingus Share Disposal: Motion (Resumed)

 

4:15 pm

Photo of Maureen O'SullivanMaureen O'Sullivan (Dublin Central, Independent) | Oireachtas source

I will speak quickly. We could apply one of our proverbs to this - "Marry in haste and repent at leisure" - because that is what we are doing here. We came in on Tuesday believing we would be talking about the postal services legislation, the Constitutional Convention and criminal justice but the media informed us very early that morning that the whole programme had been changed.

My views arise from my having spoken with long-serving members of crew in Aer Lingus. The first point they would like to make is that IAG works on the basis of a 12% profit margin, or thereabouts, whereas Aer Lingus works on the basis of a profit margin of 7.5%. Therefore, in order to be profitable, it seems that it will be up to Aer Lingus staff to make up the difference. How will they do so? We know it will be through cheap labour, outsourcing and reorganising.

The second point concerns Aer Lingus short-haul flights. European staff see clearly how the IAG outsources all check-in, baggage handling and airport support work to cheaper companies. Therefore, why would Aer Lingus staff be confident that Ireland will be treated as a special case?

The notion that the guarantees are legally binding is also a myth because various experts in corporate takeover law and appointment who have been consulting the staff have said there has never been a case of a government taking a corporate entity the size of IAG to court over breaking an agreement. That just does not happen.

Third, in the eyes of staff, the seven-year guarantee is like a time-bomb. They believe that after the seven years have expired, if not before, the Heathrow slots will be redistributed overnight for British Airways long-haul services, connecting British Airways to the Middle East and the US routes as they are far more profitable than it would be to keep Heathrow as a hub for Dublin outbound and inbound traffic.

The staff are also very concerned about the lack of consultation with them at a meaningful level. The consultation appears to have been all with shareholders and those who stand to make vast sums of money from this. I listened to the CEO this morning. Some of the phrases he used included "rationalising processes" and "deliver services in a new way". He then used the phrase "dependent on growth". Of course, that is the get-out clause.

Aer Lingus has been very much associated with so much that is Irish, including our céad míle fáilte. The company staff are renowned for their safety, commitment and care. All of these are now under threat. There are far too many questions for the staff, and far too many genuine concerns for this vote to go through now. Why is the Government selling its share in a profitable company? Why does it expect promises to be kept by a corporate entity? Corporations are not exactly known for their human rights concerns, workers rights or labour laws. How can the Government really believe that a multi-billion euro airline group carrying over 500 million passengers per year would care about the connectivity of a small island of 4.5 million people, especially when we have already seen examples of it outsourcing other work?

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