Redundancy Rights: Aer Lingus Redundancies May Exceed 1,000

Redundancy Rights: Aer Lingus Redundancies May Exceed 1,000

The Irish airline Aer Lingus, which posted losses of Ä93m in the first half
of 2009, has failed to reach agreement on its controversial Transformation Plan
to change working conditions, reduce staff members and cut the pay of those
earning over Ä35,000 a year.

On Tuesday, Chief Executive Christoph Mueller announced the company had
failed to reach an accord with unions over cost-cutting measures.  He singled
out the Irish Airline Pilots Association (IALPA) and cabin crew for failing to
compromise.  “Instead of sustainable savings of a structural nature, only
temporary savings over a short few years were offered by IALPA,” he said.

He added, somewhat ominously:

“The Board and Management believe that the majority of our staff understands
that Aer Lingus needs to make significant and urgent change if it is to have an
independent and successful financial future, and that they are committed to
achieving this change.  If successful, we can maximise the scale of the company
and keep staff numbers closer to current levels.  However, in the absence of
real cost savings being delivered from all employee groups, we will have to
resort to other measures.”

The airline has already announced 676 redundancies and Mueller conceded on
Wednesday this may now exceed 1,000:

“The Board and Management will now move to reduce capacity, further
eliminating routes which are loss making as a result of our high cost base.
 This will result in the operation of fewer aircraft, which in turn will lead to
additional redundancies beyond those included in the Transformation Plan.  It is
very likely that these redundancies will commence immediately and will be

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