Aer Lingus disclosed (10-Mar-2010) new measures to cabin crew representatives to achieve the cost savings originally contemplated under the EUR97 million cost reduction programme announced in Oct-2009. This follows the cabin crew union's rejection of the carrier's EUR97 million cost reduction programme. It was the only union of five which did not agree to management's proposals. Measures for cabin crew include:
- Targeted compulsory redundancies at statutory minimum levels, including the de-layering of the cabin crew organisation. All senior cabin crew are reportedly to become compulsorily redundant (RTE News, 10-Mar-2010). Redundant staff will be provided with two weeks of pay per year of service, compared to four weeks for other staff groups who accepted the original proposal;
- New working conditions to achieve increased productivity - annual working hours are reportedly to rise from 600 to 850;
- Transition to new pay scale including reduced salaries;
- Reduction in variable pay;
- Implementation of new Aer Lingus principles of employment. [more]
Assuming the full implementation of all of the above measures, it is expected there will be approximately 230 less cabin crew in the organisation and all remaining cabin crew employees will be on new contracts of employment. Irish Transport Minister, Noel Demspey, called for Aer Lingus to move along with the plans "quickly".
Union, IMPACT, stated (10-Mar-2010) the plans to make all cabin crew redundant and re-hire roughly 75% of the workers on new contracts was “brutal, targeted and unfair” and that if fully implemented, the new measures will damage the long term sustainability of the airline, as it will have alienated almost half of its entire workforce. The union is now requesting the Labour Relations Commission (LRC) reconvene the parties in order to find a mutually acceptable solution. [more]