This article is from page 12 of the 2008-09-02 edition of The Clare People. OCR mistakes are to be expected so download the original SWF or the rendered page 12 JPG
STAFF at Aer Lingus in Shannon expect a wait of several tense weeks before they hear anything from man- agement on proposals to deal with the airline’s operating losses.
There has been no direct communi- cation with SIPTU, the union repre- senting the majority of airline staff at the Clare airport since the company announced losses of more than €22 pep NOBlOyee
Soaring fuel prices are being blamed for the losses in the first six
months of the year.
Chief Executive of Aer Lingus, Dermot Mannion, said the cost of fuel, coupled with slowing economic erowth and the weakness of the dol- lar and sterling will continue to af- fect the airline in the remaining six months of the year.
“Even with the reduction in fuel prices over the last few weeks, com- petitive pressure on fares and vol- umes will continue and we are at best expected to break even in the second half, delivering a loss for the full year,” he said.
Airport sources say that the air- line’s 400 staff were worried by the announcement of a “root and branch” review of the airline’s costs.
But SIPTU’s Tony Carroll said that the union is “not pre-empting” any management moves and does not ex- pect to hear anything in the immedi- ate future.
He said that staff have “stepped up to the plate on every occasion there has been a problem in the past. I don’t see what more they can do. It is the price of oil which is causing problems.”
Staff costs might seem an obvi- ous target for achieving savings but nationally, union leaders are saying their members need not be the ones to take the pain.
SIPTU Branch Organiser Teresa Hannick said that the union acknowl- edges the difficult trading conditions in the aviation sector due to rising fuel costs but the company in turn must acknowledge the tremendous contribution by staff to its continued viability.
“SIPTU members have already contributed savings worth €11 mil-
lion a year to the airline,” she said in response to the company’s half yearly results issued to the Stock Ex- change last week.
“We can currently assessing these results and any impact they may have on the airline.
“As we demonstrated earlier this year, making savings and improv- ing competitiveness can be achieved without pay cuts,” she said.
A spokesman for IMPACT, which represents 2,000 cabin crew and pi- lots said their members are “natural- ly worried” about job losses.