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LAST UPDATE | 1 May 2020
AER LINGUS IS looking to begin negotiations as it seeks to cut up to 20% of its workforce.
The airline employs about 4,500 staff, suggesting that up to 900 jobs could be cut.
Unions met with the company this morning with Aer Lingus saying its workforce needs to be reduced due to a collapse in demand as a result of the Covid-19 pandemic.
It’s understood that Aer Lingus will be putting forward proposals for voluntary redundancies.
Aer Lingus has already reduced working hours and staff wages by 50% as a result of the huge impact the virus has had on the aviation industry.
Siptu representatives have this afternoon called for detailed discussions with management in Aer Lingus following this morning’s announcement.
“We have requested that the company shares its detailed plans for each area and location within the company as soon as possible,” Siptu sector organiser Neil McGowan said.
He said the trade union will “study these plans” and will seek to “ensure that as many jobs as possible are maintained in the airline”.
“We also made it clear to management that any job losses must take place on a voluntary basis,” McGowan said.
While this news is extremely worrying to our members it is not a great surprise. The aviation sector has been severely affected by the Covid-19 crisis across Europe and Aer Lingus is not immune to this downturn.
“However, we are calling on the government to extend the wage subsidy for aviation workers for the duration of the crisis in the industry. The subsidy has played a significant role in maintaining employment and it will be required for a longer period in aviation given the global impact of the Covid-19 virus on air travel,” he said.
Similarly, trade union Fórsa has called on the government to “act swiftly” to ensure that Ireland has an aviation industry after the Covid-19 crisis is over.
Ryanair
Earlier today, Ryanair said that 3,000 jobs could be cut at the airline, representing about 15% of the company’s workforce.
Reacting to the developments within the aviation sector, Labour Party TD Duncan Smith said that the government needs to intervene to project jobs.
The government needs to extend the temporary wage subsidy scheme for industries that are going to be key for getting us back on track such as Aer Lingus. It is clear that the government need to take urgent action to address the potential torrent of job losses that could occur at Dublin Airport between Aer Lingus and Ryanair.
“Aer Lingus and Ryanair must do everything they can to keep people in their jobs at this time. Keeping staff in reserves where they can must be an option,” the deputy added.
With reporting by Hayley Halpin
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Under the guise of keeping jobs and ensuring passengers will be able to travel in the future, private companies are trampling all over consumers rights. We all know that it’s extremely important to save jobs and to keep a business afloat that will save Irish citizens money in the long run. But the cost of this is worrying, a letter has been sent requesting that paying passengers money can be turned into a bailout fund for private business if needed. It’s that simple, if a private airline can’t fly, you won’t be able to get your money back. You get a voucher instead. They want to turn your money into an insurance premium. That you pay, not them. For Ryanair that gave 8 billion in the last few years to shareholders, it’s nothing short of scandalous that they don’t pay for there own insurance
@devils avacado: I’m sure the employees who have and will lose thousands in pay would happily take a voucher/credit at 110% which can be used to claim it back in the future.
@Zippy: I agree, and I am owed money for a family holiday that I’m happy to let them have as my family will use the voucher in the future. But I’m also aware that not everyone has a two income household like I do and can afford to take the hit of having an airline hang on to their money. Imagine if you were to do online shopping for groceries from let’s say Dunnes,, you placed your order and payed the bill only for the company to keep the money and not deliver your shopping. You get an e-mail saying the company is in hard times and they are keeping your money but you can have a voucher to use when they get back up and running. Do you think that would be seen as acceptable by the government?? So why are they asking the EU to make it acceptable for private airlines??
@devils avacado: you can bet that flight prices will also be inflated for 12 months as vouchers are being used, meaning you will have to add in some more of your money. You’re not getting an equivalent product in this scenario. SCC seems to be the most successful route for now, but this will likely be closed off too.
@devils avacado:
You’re completely right.. Unlike many of their competitors, AIG/Ryanair so far seem to have the capital to absorb this grounding. I think Ryanair would manage it with or without this voucher scheme but AIG, I’m not so sure.
EU are so quick to jump at things when it suits them, yet they are allowing airlines to behave like this, it’s not just legally wrong, it’s ethically wrong. If people can and want to, they can take vouchers but there are many people who need the money. Or, they have decided not to travel outside their homeland this year. Why should people be forced to subsidise a service that they don’t plan to use?
@Wreck Tangle: AIG?, what do insurance company have to do with any of this?
@James Padden:
He means IAG!
@devils avacado: no it’s not scandalous. Most airlines work off a 2% profit margin and they do factor in all sorts of anomalies but no one could have forecasted a 99% drop in business while trying to pay for a fleet of 300 aircraft including all associated running costs of a major international company. In fairness I don’t think Ryanair want to lay-off staff but I can’t blame them for wanting to hold on to badly needed cash in return for some kind of workaround. I’d be doing the same.
@devils avacado: whatever about the wrongs or rights about vouchers. The arguments about people can’t afford to loose this money is moot, they have already spent it so could afford it at the time, actually not going on flight/ holiday will mean you spend less than you would have
@devils avacado: you also need to factor in that an airline could potentially go bust. So you are investing your cash in the business with risk but no return.
For hotels in particular I would not leave any cash tied up with them. Airlines are less of a risk, but in both scenarios. Cash investment with risk and 0 return
@johnny onion eye: Not really like, many many people live pay cheque to pay cheque and have to take out small loans to go on travels, be they summer holidays or essential travel for bereavement, medical treatment etc. Whether they should or not is besides the point, according to BoI and other banks, holidays and travel are perfectly valid reasons to take out small loans. These loans will still have to be paid back with nothing to show for it.
Ryanair has €4BN in reserves,and still wants to keep customers money from cancelled flights and Leo varadkar is helping them to get EU law change, but we’re all in together Leo.
@@mdmak33: next time you book a Ryanair flight because it’s the cheapest or perhaps their schedule or airport the fly into suits your needs think of the idiot comment your making
@@mdmak33:
Well if Ryanair is going to let go 3,000 staff due to anticipated prolonged mkt demand contraction post covid19, it’ll need cash to pay redundancy, related amounts due.
CEO is just cutting his cloth by his measure & would never take state aid to prop things up just for sake of it, as was suggested by a UK union boss today on announcement.
MOL knows it’ll take years for Air Travel to return to pre covid19 numbers, so it’s bite-the bullet-time to preserve Ryanair model. He probably has eye set on a few planes going for a song, a cash job, so that his company can continue to offer remarkable value to the flying public around EU. Punters’ vouchers are as safe as cash in bank, but they should get an offer of a cheap seat as a sweetener.
Remember his bargain hunting after 9/11?
Here we go with the cuts…hopefully we can get back to normal soon
While it won’t save that much cost in the grand scheme of things, maybe its a good excuse for aer lingus to abandon the whole terrible rebranding idea and change of livery!
@ThatLJD: ffs the liverly is the least – i would say completely insignificant issue facing any airline – high infection rates around the world and closed economies – jaysus they couldnt give a shite about the logo on the bleedin planes
@Dave Hammond: I get ya brother, I was merely saying it would be a good excuse to abandon it, it’s terrible.
@ThatLJD:
Honestly, the new livery has grown on me. But now we’re going to have a situation whereby they’ll be flying two liveries for several years.
@Sequoia: ladt thing I’d have expected of you Sequoia, you’re old, you’re meant to dislike change! Well if you can embrace it then maybe I too can embrace waiting for that now white, once green, plane to roll in!
“Labour Party TD Duncan Smith said that the government needs to intervene to project jobs.
The government needs to extend the temporary wage subsidy scheme for industries that are going to be key for getting us back on track such as Aer Lingus. It is clear that the government need to take urgent action to address the potential torrent of job losses that could occur at Dublin Airport between Aer Lingus and Ryanair.”
Where’s the business case deputy? What jobs are you protecting? This is an industry that not only cannot carry out operations today but also expects no demand in the coming months? Perhaps its better value for the taxpayer to lay them off and let them get ready to find a new job.
@Wreck Tangle: As a Swords-based TD, I don’t think Duncan cares about a business case!
@Wreck Tangle: probably the same business case that has seen USA- $25bn support for United, Delta and American. France- €7bn for Air France. Netherlands-€4bn for KLM. Germany-€10bn for Lufthansa. Italy, Austria, Norway similar.
@Zippy: unions are keeping Duncan’s party’s balance sheet in the black and he is based in Swords so it’s not surprising to see him pipe up about some of his constituents. The WSS will work here if employees accept that they will only be paid the subsidy and not that plus normal pay. The unions at Aer Lingus will definitely not accept that for all staff so redundancies are the only alternative.
What this pandemic is showing is that we should stop flying, stop eating meat and never end up in a care home
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