Aer Lingus chief executive Mr Willie Walsh has ruled out any improvements to the airline's redundancy package designed to reduce staff numbers by 1,325.
The package entitles all staff to a minimum payment of €40,000, but unions at the airline remain unhappy with several elements, including the exclusion of shift allowances and overtime when calculating staff pay.
An agreed facilitator is scheduled to be appointed by this Friday to handle talks between management and unions on the airline's business plan and staff reduction programme. However last night fresh difficulties emerged in a dispute over moves to alter catering arrangements and it is not clear how these will now affect the broader negotiatiions.
On the wider issues, it is understood that Mr Walsh has sent a letter to Mr Michael Halpenny, SIPTU's national industrial secretary, re-iterating that no improvements to the package, which he said is generous, are possible.
While both sides remain divided over the numbers of staff scheduled to leave, they indicated that they were prepared to fully engage with the facilitator. However this was before the catering row emerged last night, which could lead to wider difficulties.
In relation to the facilitator Mr Halpenny said: "Using an agreed facilitator gives us an opportunity to move our discussions forward in a constructive way." He said he was aware of the company's position, but the union had its own views and would be advancing these during facilitation talks. The union has also expressed concern at the phasing out of business class seats and the ending of short-haul cargo.
The company yesterday said September 14th was the deadline for receipt of completed application forms, but not the deadline for acceptance of the package.
"Following this date, each applicant will avail of the facility to meet with a member of the human resources team who will explain the details of the scheme relevant to the individual. Subsequent to that, each applicant will be given the opportunity to accept or decline the opportunity to avail of the severance scheme," said a statement.
The airline is likely to set aside an exceptional charge of about €80 million to pay for the redundancy package. Early indications are that interest is high. Mr Walsh, along with the Minister for Transport, Mr Brennan, has expressed the desire that redundancies be voluntary.
The airline remains steadfast in its belief that with ticket prices falling sharply and low-cost carriers increasing their share of the market, Aer Lingus has to radically cut its costs. A Government sub-committee, chaired by the Taoiseach, Mr Ahern, continues to study the possible ownership options for the airline.
