Aer Lingus Severance package announced

secret_squirrel

clicky linky

There were a lot of stunned faces in work today. Lots of people suddenly wondering what to do with their futures - very tempting sums of cash involved.

People who were on low pay and low length of service get the best deal. Minimum €40k. Its probably at least 2x their annual salary.

Think the people who have worked hard over the last few years since 9/11 deserve it though. Its a very different place than it was before 9/11 and will be massively changed again.

conor-mr2

I myself was amazed when I saw the details. I'll be taking that. Thanks very much!!

Ur in the IT dept I gather from previous posts.

Gillo

As packages go thats a great one. In any company it's sad when people get mad reduntant, but at least they are getting a decent payout.

Zaph0d

Is the package open to all?

If so, what's to stop the best people leaving?

Epitaph

Had to laugh when I saw that the catering staff are going to be reduced from 243 at the moment to 10(!!) by '05.

therecklessone

Heard from a colleague in work today who's husband is in Aer Lingus IT that they're rumoured to be capping the offer at 75 weeks pay, effectively a little over €80,000.

Her husband has 35 years service, and would only get twice what some punter who's just in the door would get. Can't say I'd be too pleased if it were me.

Anyone know if its true?

therecklessone

therecklessone wrote:

Heard from a colleague in work today who's husband is in Aer Lingus IT that they're rumoured to be capping the offer at 75 weeks pay, effectively a little over €80,000.

Her husband has 35 years service, and would only get twice what some punter who's just in the door would get. Can't say I'd be too pleased if it were me.

Anyone know if its true?

Got my answer.

http://www.pprune.org/forums/showthread.php?threadid=141834

Capped at 130 weeks.

secret_squirrel

Zaph0d wrote:

Is the package open to all?

If so, what's to stop the best people leaving?

The management are reserving the right to retain anyone who they dont want to let go. But realistically they are going to lose most of their best and brightest...the young wans who have came in the door in the last 10 years - either good college leavers or people who have worked in the private sector and pull more than their own weight.

There's a whole section of middle-aged long service people who cant go for early retirement and who are wage capped in the package. They will likely be left behind, as they wouldnt consider the package good enough. Public sector employee's eh

Seriously I can understand their problem even though for the kind of money they are being offered I would probably go. But Aer Lingus is all they have known....

secret_squirrel

Epitaph wrote:

Had to laugh when I saw that the catering staff are going to be reduced from 243 at the moment to 10(!!) by '05.

They wont be laughing....more so since raving lefty loon Claire Daly works there. She's proabably out buying new batteries for her megaphone as I type

drane2

Is it fair to say the package caught unions a bit off guard?

Victor

http://home.eircom.net/content/irelandcom/topstories/3844314?view=Eircomnet

Unions at Aer Lingus seek better package
From:ireland.com
Saturday, 21st August, 2004

Unions at Aer Lingus have called on the airline's management to make several improvements to the redundancy package announced on Thursday, writes Emmet Oliver.

Aer Lingus is expected to spend up to €80 million funding the redundancy plan in a bid to reduce the workforce by 1,325.

While unions have refused to reject the plan outright, reservations were expressed at meetings in Dublin Airport yesterday.

Two further union meetings are scheduled to take place on Wednesday.

Mr Christy McQuillan, SIPTU branch secretary at Aer Lingus, said his union would be bringing several "serious anomalies" to the attention of management at meetings in coming days.

He said the package, which guarantees workers a minimum payment of €40,000, was based on basic pay, rather than total pay.

"It does not include shift pay, roster duty allowances or overtime payments," he pointed out.

He said workers throughout Aer Lingus received shift pay because they worked unsocial hours.

He said there was also concern that workers who previously were engaged in part time or seasonal work would not have this taken into account.

On Thursday the company unveiled the redundancy scheme, which breaks into three options.

Option A involves a €7,000 lump sum per year of service.

Option B entitles staff to nine weeks of pay per year of service, up to a maximum of 130 weeks.

Option C allows staff to claim four weeks pay per year of service, plus a service bonus of €2,750 per year of service.

Mr McQuillan said these limits on the package militated against staff with longer service. "There is no doubt that will act as a deterrent to some people taking the package".

However, the company has said the package is structured in this manner to suit the different employees at the company.

Mr Michael Landers, assistant general secretary of Impact, said while his union did not represent as many shift workers as SIPTU, he shared the concerns of Mr Mc Quillan.

Aer Lingus yesterday set up a helpline to provide information for employees on the various options. While the airline declined to comment, it is understood there were a significant number of phone calls to the helpline.

Meanwhile, it has emerged that staff who take the package will be able to retain ownership of shares in Aer Lingus. All employees of Aer Lingus with over a year of service hold shares in an Employee Share Ownership Trust (ESOT).

As of yesterday, the trustees of the ESOT held 14.9 per cent of the airline's equity on behalf of staff. Staff who leave the airline in the next few weeks will be able to retain these shares.

It is difficult at this stage to put a valuation on the shares. But based on a €700 million valuation for Aer Lingus, employees could stand to make a gain of €26,000 each. If they hold the shares for up to three years in the ESOT this money will be tax efficient.

On Thursday the chief executive, Mr Willie Walsh, said he was confident the generous severance package would attract considerable interest.

He emphasised his desire was to see voluntary redundancies at the airline. Staff have until September 14th to decide. Departures from the airline could begin as soon as late September.

Victor

http://www.timesonline.co.uk/newspaper/0,,2765-1226871,00.html

Staff set to accept Walsh's pay offer
Richard Oakley

STAFF at Aer Lingus are expected to accept the company’s redundancy package for 1,325 staff, union sources said this weekend.
The package, unveiled on Thursday, offers workers a minimum of €40,000 and a maximum of €80,000 to leave the company.

While Siptu has voiced reservations about the deal, union sources say that privately they expect huge take-up of the offer, which one described as a “generally acceptable deal”.

“Our prime focus now is to protect the conditions of the workers who will not be leaving and to push for a pay rise for them,” said one union source yesterday.

“From conversations with staff at the airline and from calls to the union it is clear there is going to be a very positive response to this offer and that it will come quickly,” the source said.

The Aer Lingus deal, one of the most ambitious in the airline’s history, is likely to cost the company up to €80m. Designed to assist its transformation into a low-cost operator, workers have until September 14 to accept.

Staff will be offered nine weeks’ pay for every year served up to a maximum of 130 weeks, or can opt for €7,000 for every year of service. This means a minimum payment of €40,000 and a maximum of €70,000. A third option of four weeks’ pay per year of service, plus a service bonus of €2,750 per year is also on offer.

The terms are more than four times the statutory redundancy rate of two weeks’ pay for every year of service and more than twice the payout received by the 3,000 staff made redundant in the past three years.

Aer Lingus has indicated that it is prepared to pay out on the package in order to achieve its goal of reducing staff numbers from 4,000 to about 2,700.

Willie Walsh, the chief executive of the airline, described the offer as “an innovative, imaginative programme”. Union sources have claimed credit for the deal saying that it was offered as a result of their pressure. It was reported yesterday that Siptu will seek several improvements to the package.

secret_squirrel

drane2 wrote:

Is it fair to say the package caught unions a bit off guard?

Yep!

Its fair to say giving them exactly what they were asking for has kicked the legs from under them negotiation wise. The package plus the ESOP sign off has made it more or less at fait accompli.

I know of one person who left on friday!!

secret_squirrel

drane2 wrote:

Is it fair to say the package caught unions a bit off guard?

Yep!

Its fair to say giving them exactly what they were asking for has kicked the legs from under them negotiation wise. The package plus the ESOP sign off has made it more or less a fait accompli.

I know of one person who left on friday!!

Victor

http://www.rte.ie/news/2004/0830/aerlingus.html

Talks on future of Aer Lingus adjourned
30 August 2004 22:14

Talks between union officials and Aer Lingus management have been adjourned until 10am tomorrow morning, with neither side making any official comment on the talks so far.

It is understood that the unions are seeking full and open talks on all aspects of both the redundancy plan and the implications of the new business plan for the airline.

The two sides began their talks last Friday after the company's Chief Executive, Willie Walsh, announced plans for more than 1,300 voluntary redundancies over three years.

The two unions involved, SIPTU and IMPACT, are concerned about the future pay and working conditions of those choosing to remain at the airline.

Employees who agree to leave the company will each get a minimum of nine weeks' pay per year of service.

They also want the extension of the 14 September deadline for employees to decide on whether or not to accept the redundancy package.