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31/01/2008
Deadline Looms In Aer Lingus Pay Dispute
Aer Lingus management and unions will meet today in an effort to resolve an on-going dispute over a cost-cutting programme and changes to working practices at the airline.
Management warned staff earlier this month they face having pay increases withheld if an agreement on working practices is not made by today - even though they are due under the national agreement.
The company told trade union Impact that if agreements on change were not reached by the end of January, it would deem outstanding payments that are due to them to be the contribution of pilots and cabin crew towards the airline's overall cost-saving programme
However, an Impact spokesman said the company has no authority under the national agreement to keep back such pay increases.
Negotiations on the Programme for Continuous Improvement (PCI), aimed at generating annual savings of €20 million have been underway for months.
Last year Air Lingus Chief Executive Dermot Mannion promised shareholders he would deliver PCI07, a €20m programme of savings on staff costs. However, he has still failed to reach agreement with unions.
The company introduced a freeze last October on paying two phases of the national agreement, due last autumn and in April, until progress was made on the cost-saving plan.
It appears increasingly unlikely that today's deadline will be met.
(VB)
Management warned staff earlier this month they face having pay increases withheld if an agreement on working practices is not made by today - even though they are due under the national agreement.
The company told trade union Impact that if agreements on change were not reached by the end of January, it would deem outstanding payments that are due to them to be the contribution of pilots and cabin crew towards the airline's overall cost-saving programme
However, an Impact spokesman said the company has no authority under the national agreement to keep back such pay increases.
Negotiations on the Programme for Continuous Improvement (PCI), aimed at generating annual savings of €20 million have been underway for months.
Last year Air Lingus Chief Executive Dermot Mannion promised shareholders he would deliver PCI07, a €20m programme of savings on staff costs. However, he has still failed to reach agreement with unions.
The company introduced a freeze last October on paying two phases of the national agreement, due last autumn and in April, until progress was made on the cost-saving plan.
It appears increasingly unlikely that today's deadline will be met.
(VB)
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