IAG's Aer Lingus To Lay Off Workers After Wage Subsidy Scheme Expires

(Alliance News) - Irish airline Aer Lingus intends to lay off staff after a Government wage ...

Alliance News 23 May, 2020 | 8:51AM
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(Alliance News) - Irish airline Aer Lingus intends to lay off staff after a Government wage subsidy scheme expires next month, a trade union said.

It has been buffeted by the coronavirus crisis which has devastated the aviation industry.

Aer Lingus owned by International Consolidated Airlines Group SA, which also owns British Airways and Spanish carrier Iberia. IAG has confirmed 12,000 job cuts at British Airways will still go ahead despite the UK government extending its furlough scheme until the end of October.

Forsa official Angela Kirk represents cabin crew and other grades at Aer Lingus and said the Irish national carrier's plans were premature.

"The effect of Covid-19 is not just an issue for Aer Lingus and its staff.

"It's the most significant crisis for the entire Irish aviation industry in a generation, with the potential to adversely affect the commercial connectivity of the country.

"To act unilaterally now, and to abandon the efforts to negotiate a solution to the current crisis, and plan for a future recovery, is to squander the time remaining to negotiate real solutions."

In a memo to members issued after the meeting, unions said the airline had confirmed its intention to extend current arrangements for pay, funded in part by the Irish Government's wage subsidy scheme, until June 21.

The current official subsidy scheme is due to end next month but the caretaker Government has said it will continue in a modified way beyond that.

Forsa said: "The company's plans to unilaterally lay off staff and to reduce hours and pay after 21st June is premature."

Negotiations on the restructuring of Aer Lingus have been taking place between unions and management.

Workers' representatives led by the Irish Congress of Trade Unions met the company on Friday afternoon.

Airlines have been grappling with a catastrophic decline in customer demand during the pandemic.

They face challenges around profitability while ensuring social distancing when more flights begin running.

In March, US President Donald Trump suspended travel from Europe to the US.

Flights within Europe have also been severely restricted.

On Friday the Irish government made the completion of a passenger locator form a statutory requirement but has not followed the UK in introducing a 14-day mandatory quarantine for travellers arriving in the country.

The industry has argued that will dissuade visitors.

By Michael McHugh, PA

source: PA

Copyright 2020 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
International Consolidated Airlines Group SA 220.90 GBX 6.66 -

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