Aer Lingus (EI, Dublin International) has warned its employees that it will unilaterally conduct layoffs, reduce salaries, and slash hours once the Irish government's Temporary COVID-19 Wage Subsidy Scheme expires on June 21, the Irish union Fórsa told the national broadcaster RTÉ.
Numbers were not specified, but Aer Lingus had already told unions it expects its 4,500-strong workforce next year to be about 20% smaller than in 2019, which led to speculation that the company wants about 900 redundancies.
Fórsa criticised the decision as premature, as a month remains to explore various options. However, so far negotiations on the restructuring between unions and management have yet to yield much agreement. Until now, the airline has committed to paying employees 50% of their salaries until June 21, funded in part by the subsidy scheme.
The IAG International Airlines Group-owned carrier's chief executive, Sean Doyle, told staff by video message on May 22 that the pandemic's impact on its business had been "crippling". Passenger numbers had fallen to 939 on that day compared to 18,361 on the Friday of this week last year.
"Throughout the crisis, we have engaged with all the senior members of the relevant representative bodies. This engagement has been constructive and respectful. However, unfortunately it has not as yet resulted in an agreed way forward," Doyle said. "The unfortunate reality is that notwithstanding the workforce in its entirety taking a 50% pay reduction, and the support provided by the temporary wage subsidy scheme, additional cost savings are now urgently needed."
The Services Industrial Professional and Technical Union (SIPTU), which also represents staff at Aer Lingus, called on the government to extend its wage subsidy for aviation workers for the duration of the current crisis.
