Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

Aer Lingus trade unions split over IAG offer

Published 23/02/2015, 16:00
© Reuters. An Aer Lingus plane taxis before take off at Dublin airport
ICAG
-
AERL
-

DUBLIN (Reuters) - Aer Lingus's two main trade unions have not softened their opposition to a takeover approach by International Consolidated Airlines Group (IAG), they said on Monday after a senior union official at the Irish airline said he backed the bid.

Myles Worth, secretary of Aer Lingus's Central Representative Council (CRC) -- a grouping of staff representatives from the company's trade unions -- dropped his opposition on Sunday in an apparent boost to the owner of British Airways.

However the SIPTU and IMPACT trade unions, whose members sit on the CRC, said that Worth was speaking in a personal capacity and that their position is unchanged ahead of talks with executives from IAG later on Monday.

"Anybody who wants to know the SIPTU view, all they have to do is look at everything we've said since day one. Until and unless clear and tangible guarantees can be given, there is nothing for the government to consider," SIPTU Divisional Organiser Owen Reidy told the Newstalk radio station.

A spokesman for IMPACT said it still had very grave concerns about job losses and connectivity, adding that no inter-union consultation had taken place, so suggestions that they had softened their stance were incorrect.

The Aer Lingus board recommended the 1.36 billion euro (997 million pounds) offer from IAG last month, subject to the Irish state selling its 25 percent stake, but political and trade union opposition has been significant.

In an attempt to soothe concerns, IAG has pledged to maintain key landing and take-off rights at London's Heathrow airport for its Irish routes for five years while it has said job cuts would be minimal and be far exceeded by new roles as it expands.

Irish political resistance is especially strong among members of the Labour Party, the government's junior coalition partner, ahead of tough elections next year and a junior minister from the party remained sceptical on Monday.

"I am more assured post his intervention," Sean Sherlock told Newstalk, referring to Walsh's appearance at a parliamentary committee 10 days ago. "But I still remain doubtful until we see how the guarantee will bear fruit."

© Reuters. An Aer Lingus plane taxis before take off at Dublin airport

($1 = 0.8832 euros)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.