Richard Bruton (Dublin North Central, Fine Gael)
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Question 148: To ask the Minister for Enterprise, Trade and Employment if the proposal to use statutory redundancy payments as an element in the organisation of new working conditions is in accordance with the rules of the redundancy fund; and if it constitutes State aid in a case such as Aer Lingus. [13769/10]

Batt O'Keeffe (Cork North West, Fianna Fail)
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In general, redundancy is payable in instances where the job as opposed to the person is made redundant. In relation to the issue of 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.

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, cabin crew agreed to ballot again on the restructuring package. The outcome of this ballot was in favour of acceptance of the plan and the company has welcomed the result and announced its intention to work with the Unions to achieve the required productivity targets.