Aer Lingus has reiterated its opposition to transferring 14.9 per cent of the airline's shares to staff until two outstanding industrial relations issues are addressed.

At a meeting of the National Implementation Body (NIB) the airline's chief executive, Mr Willie Walsh, said he could not ask the Minister for Finance to transfer the shares to staff until these issues were resolved.

One relates to starting times for baggage handling staff and the other relates to cabin crew serving on trans-Atlantic routes. The airline has said it will only attend Labour Court talks on the cabin crew issue if the outcome is binding. Mr Walsh told the NIB that before the 14.9 per cent shareholding could be transferred, the airline was required to confirm to Government that the terms of last survival plan were being implemented.

The company is meanwhile progressing its plan to reduce the airline's staff numbers by 1,325. However union opposition continues to be strong. Yesterday about 70 members of the airline's catering staff, who are likely to face the deepest cuts, held a meeting in the SIPTU offices in Dublin.

The meeting was described by sources as extremely tense with some workers accusing the union of not doing enough to prevent the plan.

Last week the unions revealed that their opening negotiating position in any redundancy talks will be nine weeks of pay for every year of service. However some union members do not support the union entering into any talks in relation to a redundancy package.

According to internal company figures the catering operation, which is currently staffed by about 250 people, is due to only employ nine staff by 2007.

In another development the results of a SIPTU ballot on potential industrial action at Aer Lingus will be known today. The union describes the vote as a "protective ballot" which will only be implemented if the airline tries to force through restructuring.