Aer Lingus and its pilots abruptly ended talks on jobs cuts after splitting over the involvement of a trade union body representing workers across the Irish carrier’s owner, International Airlines Group (IAG).
The Irish company opposes the IAG European Works Council’s argument that the airline’s parent should consult it on Aer Lingus’s plans to cut 500 jobs – 70 pilots, 140 cabin crew and 290 head office staff – before local talks begin.
Talks between Aer Lingus and the Irish Airline Pilots’ Association (Ialpa) ended after 12 minutes last week in a dispute over the works council’s intervention, correspondence between the sides shows.
Aer Lingus branded the work council’s move “a stunt”, according to a notice from Ialpa to members. The union also tells the airline that it does not accept its position in a letter to management.
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“There was no reason for the company not to continue the meeting,” the union’s note to members states.
“It is particularly disappointing that, having sought engagement with Ialpa, the company elected to end the meeting before any meaningful discussion could take place.”
[ Aer Lingus executives fastening their seat belts for a bumpy ride aheadOpens in new window ]
Aer Lingus maintains that the works council has no role as the airline’s proposals are not transnational and affect only the company’s Irish-based staff.
Labour law obliges the airline to consult with Irish-based workers’ representatives on the proposed job cuts, Aer Lingus points out in a letter to Ialpa.
That letter indicates that Ialpa wanted to discuss the jobs cuts without prejudice to any procedure involving the works council.
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But the airline argues there is “no merit” in pausing statutory consultations and in meeting Ialpa “outside” that process on the job cuts proposals “without prejudice to an unspecified legal process”.
Ialpa’s letter states that Aer Lingus’s legal obligations to consult with staff do not displace its obligations under collective agreements with the pilot’s union.
Any consultation process should be capable of addressing both sets of obligations, the union adds.
Ialpa maintains that it is “ready and willing to engage constructively” with management.
Both sides are seeking to meet in coming days.
Aer Lingus has already begun consultations with unions Fórsa and Siptu on proposals to cut up to 290 jobs in its Dublin Airport head office, according to a source close to the talks.
Neither union is understood to have raised the works council’s request to consult with IAG ahead of any Irish negotiations.
Aer Lingus plans to cut up to 500 jobs to reduce costs so it can increase margins, the difference between day-to-day spending and revenue, to 12 to 15 per cent, to meet IAG targets.
The carrier lost €34 million in the first half of the year as costs mounted. However, it earned €69 million in the three months to June and expects to make a profit this year.
Works councils bring together representatives of staff and management in multinational businesses in the European Union (EU) to discuss transnational issues, including restructuring across states in the bloc and the European Economic Area. They cannot orchestrate industrial action.
Spanish-domiciled IAG’s other airlines include Iberia and Vueling, along with British Airways in the UK.
