Strike threat looms at airline Aer Lingus

[October 8th 2008]

Irish airline Aer Lingus is facing the threat of strike action which could cause flight delays and cancellations.

The troubled airline, which lost €22 million in the first half of the year, plans to outsource all its ground services operations, including check in, baggage handling, cleaning, catering and cargo. This could lead to one third of the airline’s staff losing their jobs.

In a press statement, Aer Lingus said it had “agreed to proceed with a cost reduction programme to deliver the substantial savings which are necessary to ensure the company's long-term viability as an independent airline”.

The airline wants to cut its annual costs by €74 million. This would involve cutting staff costs by €50 million, long haul costs by €10 million, and advertising, distribution and airport costs by €14 million. It has also announced a pay freeze until at least the end of next year. And it wants all the changes to be implemented by the end of November.

Aer Lingus employees who are members of the Irish trade union SIPTU have balloted for all out industrial action. “"This is Irish Ferries Mark II. It represents a fire sale of good quality jobs by a management that can see no further than the next quarter’s profit and loss sheet,” says SIPTU national industrial secretary, Gerry McCormack.

"Nobody in the company will emerge unscathed from this exercise. Even those who keep their jobs will have to sign up to new contracts, ‘a merit and performance based culture’ and a pay freeze until the end of 2009,” McCormack added.

SIPTU says it is willing to discuss savings with Aer Lingus. “But, as we have made clear from the start, we are totally opposed to outsourcing,” says McCormack.

Aer Lingus maintains that it wants to safeguard its long haul flights from Shannon and Dublin airports. The airline plans to close its cabin crew bases at Shannon and Heathrow airport and shift long haul cabin crew jobs to the USA.

Flights between Ireland and New York, Boston and San Francisco will be crewed by staff from the US, while Dublin based crew will be used on flights to Orlando, Chicago and Washington. Aer Lingus’s new hub at Belfast airport will continue to operate as normal.

Written by: Nick Purdom