1,620 Aer Lingus staff interested in deal for severance

The number of staff expressing an interest in the Aer Lingus voluntary severance scheme has surpassed all forecasts, with 1,620…

The number of staff expressing an interest in the Aer Lingus voluntary severance scheme has surpassed all forecasts, with 1,620 people submitting a formal application, writes Emmet Oliver.

The airline expressed satisfaction at the outcome, but its chief executive, Mr Willie Walsh, warned that demand was so strong that it might not be possible to release everyone who applied.

"This is an important day for Aer Lingus and for all our staff, both those who have opted to leave and those who have made their decision to stay," he said. Staff are being offered nine weeks of pay for every year of service, subject to certain limits.

Unions warned that there might be industrial relations problems if the company seeks to push through any more change.

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A major concern for SIPTU is the issue of Aer Lingus outsourcing certain functions to private-sector providers. Mr Michael Halpenny, national industrial secretary of SIPTU, said: "It appears the company is willing to get rid of good-quality jobs and replace Aer Lingus staff with much lower-paid contract employees enjoying poorer working conditions, all for the sake of minimal savings."

Mr Walsh said the airline would "continue to engage with our staff and their representatives on the management of the transition phase post departures".

At close of business on Thursday some 900 applications had been submitted, but this grew to about 1,200 by lunchtime yesterday and finished at 1,620. The company's target was 1,325, almost a third of the workforce. The severance programme is expected to cost between €80 and €90 million. Staff who submitted an application do not have to accept an offer. However, the company said it expected the majority of those who expressed an interest to opt for voluntary severance.

If the 1,325 redundancies are secured, the ratio of staff to passengers at Aer Lingus will fall significantly and come more into line with low-cost carriers like easyJet and Ryanair.

However, unions were playing down the significance of yesterday's events. A SIPTU statement said the deadline represented "nothing more than the last opportunity for Aer Lingus workers to express a possible interest in the package".

Mr Halpenny said there was "a serious range of issues" which still had to be dealt with. Unresolved issues - which are believed to include outsourcing - would be examined as part of a facilitation process chaired by Mr Kevin Foley of the Labour Court, he said.

Another union, Impact, warned that staff reductions would have a serious impact on cabin crew. It said the loss of hundreds of cabin crew would leave the airline unable to operate its schedule unless new working practices were agreed.

The union said it expected management to honour a pledge that working practices would not be changed without agreement. An Aer Lingus union delegation has met the Minister for Transport, Mr Cullen, to relay the concerns of the workforce about the airline's plans.