Stormclouds Gather at Aer Lingus
Thursday October 30, 2008
While I am currently bathing in the sunshine of a clear (but cold) day, management at Ireland's flag carrier Aer Lingus will feel the storm clouds gathering - after weeks of negotiations regarding controversial cost-cutting measures, the powers that be are now proceeding with plans to cut 1,500 jobs. The implementation date for the cost cuts to take effect is already set ... at December 1st, a mere month away
Accusing unions of "failing to engage in any meaningful way to address the cost base", Aer Lingus is seeking a reduction of nearly 75 million Euro in overheads by unilaterally implementing the drastic cost-cutting plan. This includes the outsourcing of up to 1,300 jobs in ground operations ... and using US-based crews on transatlantic routes. While all this was still in negotiation with the unions affected, Aer Lingus management seems to have acted very proactive: Proposals from outsourcing suppliers have already been received. A preferred supplier is actually to be selected by the end of next week already, with a swift move to conclude contracts expected. In parallel, existing staff is to be advised of redundancy options during the coming two weeks.
SIPTU National Industrial Secretary Gerry McCormack has accused Aer Lingus of "walking out" and voiced his bitter disappointment. Strike action at Aer Lingus now looks unavoidable and may hit the busy (and profitable) pre-Christmas slots.
Accusing unions of "failing to engage in any meaningful way to address the cost base", Aer Lingus is seeking a reduction of nearly 75 million Euro in overheads by unilaterally implementing the drastic cost-cutting plan. This includes the outsourcing of up to 1,300 jobs in ground operations ... and using US-based crews on transatlantic routes. While all this was still in negotiation with the unions affected, Aer Lingus management seems to have acted very proactive: Proposals from outsourcing suppliers have already been received. A preferred supplier is actually to be selected by the end of next week already, with a swift move to conclude contracts expected. In parallel, existing staff is to be advised of redundancy options during the coming two weeks.
SIPTU National Industrial Secretary Gerry McCormack has accused Aer Lingus of "walking out" and voiced his bitter disappointment. Strike action at Aer Lingus now looks unavoidable and may hit the busy (and profitable) pre-Christmas slots.
Comments
siptu should hang their heads in shame, the last thing Aer Lingus need now is a strike
True, Paul – Aer Lingus needs a strike like I need a hole in the head. Then again the last thing 1,500 Aer Lingus employees need is redundancy due to outsourcing. There should be a middle way open to both parties, but apparently they are stuck in their own paths.