Joan Burton (Dublin West, Labour)
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Question 157: To ask the Tánaiste and Minister for Enterprise, Trade and Employment her views on the decision of Aer Lingus to make cabin crew redundant with a view to re-hiring all bar 230 of them on new contracts with lower salaries; if the State will be called on to fund, or part fund, these redundancies through the social insurance fund; the proportion of those working at senior cabin crew level who are to be among the 230 people not being offered a new contract; the extent to which cabin and pilot teams are being based in jurisdictions abroad; and if she will make a statement on the matter. [12741/10]

Finian McGrath (Dublin North Central, Independent)
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Question 161: To ask the Tánaiste and Minister for Enterprise, Trade and Employment if she will support a matter (details supplied). [12980/10]

Róisín Shortall (Dublin North West, Labour)
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Question 162: To ask the Tánaiste and Minister for Enterprise, Trade and Employment if it is in order that a company can make several hundred workers compulsorily redundant with the specific intention of recruiting a large proportion of them back on vastly reduced terms and conditions; the liabilities of the State in such a scenario in terms of redundancy payments and rebates; and if she will make a statement on the matter. [13073/10]

Róisín Shortall (Dublin North West, Labour)
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Question 163: To ask the Tánaiste and Minister for Enterprise, Trade and Employment the protections that are in place to safeguard workers against being made compulsorily redundant by their employer in order to re-employ the same workers at vastly reduced terms and conditions as a means of reducing the wage and other staff costs of that employer; and the steps open to her to prevent such practice. [13078/10]

Dara Calleary (Mayo, Fianna Fail)
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I propose to take Questions Nos. 157, 161,162 and 163 together.

In October 2009 Aer Lingus announced details of a cost savings programme aimed at reducing operating costs by €97 million, comprising staff savings of €74 million and non-staff cost savings of €23 million. Following four months of intense negotiation between Aer Lingus management and Unions, under the auspices of the Labour Relations Commission, the resulting joint agreements were put to Aer Lingus staff with a recommendation for acceptance by each of the respective unions. The results of the ballots were that the plan was accepted by four out of the five unions involved. Cabin crew rejected the plan by a 2:1 majority. Aer Lingus subsequently announced their plans to achieve the necessary cost savings.

As a result of further discussions at the Labour Relations Commission on 19 March, during which clarifications on the cost saving plan were given, cabin crew will ballot again on the restructuring package in the coming days. The restructuring process within Aer Lingus is therefore the subject of continuing dialogue with the trade unions representing the company's employees. I am satisfied that there is an adequate legal framework in this country governing restructuring arrangements at company level in the form of legislation covering collective redundancies and legislation covering information and consultation requirements.

In relation to the issue of redundancy and eligibility for redundancy payments, I should point out that redundancy is a matter of fact that occurs after the event of termination of employment. Qualification for an entitlement to the payment of statutory redundancy under the Redundancy Acts cannot be made until the full facts of the situation are known, after the event. When presented with redundancy claims for payment, the Department will have regard to the legislative provisions governing the eligibility of any such claims and can, if necessary, have the matter referred to the Employment Appeals Tribunal for a decision on any claims that might actually be made.

The Government is satisfied, from all of the information available to it, that a major restructuring of the Group's cost base is essential if Aer Lingus is to return to profitability and growth. The cost base of Aer Lingus is seriously out of line with that of its competitors. Airlines throughout the world are either rationalising or going out of business as a result of the global economic downturn. The Government want to see a strong viable Aer Lingus in the future. The cornerstones of Government aviation policy are competitiveness and connectivity. A viable Aer Lingus is key to ensuring the achievement of these objectives.