Martin Ferris (Kerry North, Sinn Fein)
Link to this: Individually | In context

Question 110: To ask the Minister for Enterprise, Trade and Innovation if he will intervene in order to ensure that Aer Lingus is not allowed proceed with its plans to decimate its current cabin crew staff as part of its attempt to undermine wages and conditions. [13305/10]

Dara Calleary (Mayo, Fianna Fail)
Link to this: Individually | In context

In October 2009 Aer Lingus announced details of a cost savings programme aimed at reducing operating costs by €97million, 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, a general meeting of union members decided on Monday 22nd March to hold another ballot of all cabin crew on the restructuring package. Balloting commenced on Tuesday 23rd March.

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.