Union warns Aer Lingus on plans for outsourcing

THE TRADE union Siptu has warned Aer Lingus management that it is totally opposed to moves by the airline to outsource any element of its operations as part of new cost-containment plans.

It is understood that the airline told trade unions yesterday that its revenue position had worsened and that it was imperative that it pressed ahead with cost savings.

Following talks with management yesterday, the union said the airline would announce the extent of the cost-savings measures it required following a meeting of the board of the airline scheduled for tomorrow.

Siptu said the company would then outline the specifics of its cost-saving measures at meetings with staff representatives early next week.

It has been widely reported that among the cost-saving proposals under consideration by Aer Lingus management is a plan to outsource about 1,500 jobs at Dublin, Cork and Shannon airports.

It is also believed to be considering hiring crew from North America to operate its transatlantic flights and is rethinking plans to expand its fleet.

The Aer Lingus board has so far not signed off on the cost-saving proposals drawn up by management at the company.

It is understood that at meetings yesterday Aer Lingus told Siptu and craft unions that it was still forecasting a substantial loss next year.

Informed sources said that Aer Lingus had indicated that its revenue picture had worsened in recent months.

The company said that it was imperative that the airline proceeded with its new cost-saving initiative. Aer Lingus is to meet Impact trade union officials today. The union represents cabin crew and pilots at the airline.

The meetings between Aer Lingus and the trade unions are being chaired by Kevin Foley, director of conciliation at the Labour Relations Commission.

Aer Lingus yesterday declined to comment on the statement issued by Siptu following the meeting.

Siptu said that at the meeting, held under the auspices of the Labour Relations Commission, Aer Lingus had outlined its current and projected economic situation for 2008-2009. "The company also reiterated its intention to implement significant cost reductions across all of its operations," the Siptu statement said.

The company will announce the extent of the cost savings required following the Aer Lingus board meeting scheduled for tomorrow.

Following the board meeting, meetings will be arranged with staff representatives early next week at which the company will outline the specifics regarding their cost-cutting proposals.