Aer Lingus accepts proposals to end privatisation dispute
The long-running dispute over the part-privatisation of Aer Lingus neared resolution today after the company agreed to give workers a generous pay rise.
Management at the airline have accepted Labour Court recommendations to award staff a 4% pay rise in addition to the 10% proposed as part of the national pay deal.
Aer Lingus employees will now get a 14% wage increase over the next two and a half years, if the union supports it.
Christy McQuillan, Siptu’s Aer Lingus branch organiser, said management informed the union it had accepted the deal in its totality.
“Now that Aer Lingus management has clarified its position, our Branch Committee will be able to consider the full implications of the Labour Court Recommendation and advise our members accordingly,” he said.
It is understood Aer Lingus chief executive Dermot Mannion emailed Siptu this morning to say the Labour Court recommendations would be accepted.
Siptu chiefs will meet on Tuesday to decide whether to urge members to vote in favour of the proposals, but it is understood the Committee will support the deal as it is close to original demands made when privatisation was first suggested.
The pay rise is on top of lump sums already offered by the company of between €400 and €4,400 for each worker, depending on length of service.
If accepted by Siptu members, the deal will secure workers’ pay and conditions in advance of the privatisation of the company, which continues to be opposed by Siptu, due to get under way next month.
The dispute over privatisation, planned for September, saw Siptu officials demand a 5% pay rise for its members while Aer Lingus had offered workers a 3% pay rise.
But following intervention by the Labour Court, Aer Lingus staff have been offered a 3.5% increase in wages from September 1, and another 0.5% rise from April 1 next year.
The deal also provides for significant improvements in long service increments and death-in-service benefit.
Almost 600 workers on fixed-term contracts would be made permanent, with an assurance that 85% of all ground staff were permanent. Any future redundancies would be on a voluntary basis.
The Labour Court also recommended pension contributions be increased by 2% from staff and by 4% from the company.
In a statement, Aer Lingus confirmed it had accepted the new pay arrangements for all Irish staff other than pilots.
“The company is satisfied that recommendations set out will be beneficial to all parties. We look forward to bringing matters relating to pilot’s pay to a successful conclusion during next week,” the company said.
