The Aer Lingus restructuring plan limped ahead yesterday, with a conditional offer by SIPTU to enter talks with management. SIPTU, which represents mostly operative and clerical workers, said it was available for talks "immediately", provided Aer Lingus management dropped proposals to "outsource" catering, baggage handling and other services.
The Aer Lingus restructuring plan envisages spinning off these services into separate subsidiaries which would eventually be sold. The majority of workers affected are members of SIPTU.
Some 2000 members of SIPTU and IMPACT - the other main Aer Lingus union - are to lose their jobs under the plan. The company has set the end of the month for applications for a £40 million (€51 million) voluntary redundancy scheme.
Compulsory redundancies from the 6,300 staff will follow if there are not sufficient voluntary departures. The end of the month is also the deadline for agreement with staff on work practice changes and productivity increases.
The airline has also embarked on a search for private sector investment to stave off bankruptcy early in the new year - when its cash reserves will be exhausted. No investor has yet been found by its advisers, NCB Corporate Finance. Up to 35 per cent of the airline might be sold, while another 10 per cent could be offered to staff in exchange for productivity gains.
