Talks between Aer Lingus and Sitpu broke down at the Labour Relations Commission this evening amid recriminations from both sides.
Commenting on the development, Siptu national industrial secretary Gerry McCormack said: “The company withdrew from the process because it claimed that it could not see any viable alternatives to its own outsourcing agenda.
“We are bitterly disappointed. We are also very concerned that we have not been able to get answers to substantial questions concerning how the very large costs that will be incurred on the pension fund will be met if there are mass redundancies at the airline.
In a statement, Aer Lingus said: "Following four weeks of discussions, it is frankly disappointing that Siptu has failed to engage in any meaningful way to produce alternative proposals to meet this imperative."
The company warned: "The reality is that the airline does not have time on its side and cannot endure another year of losses in 2009."
Aer Lingus said it had today received proposals from outsourcing suppliers and would choose a supplier by the end of next week.
"Given the union's failure to produce alternatives, we will now focus on concluding contract discussions with third party suppliers and we will be in a position to advise employees of their individual options on voluntary severance package or TUPE transfer over the coming two weeks."
Mr McCormack of Siptu said the union would be reviewing its position at a meeting of shop stewards on Friday afternoon. "Meanwhile our ballot is continuing and, should the company proceed unilaterally with its outsourcing plans, we will proceed in turn with industrial action," he added.
Mr McCormack thanked Kevin Foley, director of conciliation services at the LRC for his help during this process and expressed regret it was not more fruitful.
Aer Lingus had said it would introduce its controversial €74 million cost-reduction programme unilaterally if there is no agreement on an alternative set of proposals that could generate a similar level of savings by the end of November.
