Proposal by the National Implementation Body for a Process in relation to the ongoing dispute at Aer Lingus

Proposal by the National Implementation Bodyfor aProcess in relation to the ongoing dispute at Aer Lingus

- On foot of its meeting today with the parties and its consideration of the issues involved, the National Implementation Body believes that it is beneficial to continue to engage with the parties with a view to identifying a basis for making progress.

- SIPTU, IMPACT and the Craft Group of unions complained that Aer Lingus management had moved unilaterally to withhold the application of the two remaining increases due under Towards 2016 and pay scale increments due in April 2008. The unions consider that such action is in breach of Towards 2016 and agreements with the company.

- The company’s position is that it is operating in a highly competitive and volatile environment. Its commercial future depends on its ability to respond successfully to the changing market environment and to develop new services on a competitive and sustainable basis. Accordingly, its position is that until such time as the terms of PCI-07 or equivalent savings are achieved, a pay freeze will apply to all employees.

- The Body notes the extensive processes, internally between the parties and with the assistance of the State industrial relations machinery, in relation to transformation at the Company which have taken place.

- Accordingly, the NIB suggests the following process:

i. The NIB proposes to meet with the parties to confirm its understanding of the position in detail of each of the parties – the management of the Company, and SIPTU, IMPACT and the Craft Group of unions – as regards the various industrial relations processes which have taken place or are underway to address issues which gave rise to and which arise from:

· the Labour Court Recommendation (LCR 18850) and the parallel pilots’ process;

· the non-payment of increases due under the terms of Towards 2016 and other internal agreements; and

· the achievement of PCI-07 or equivalent savings for each of the parties.

ii. A number of issues have been raised by the parties in their discussions with the Body which it believes should be further explored, especially as regards the practical and procedural implications of proposed new work arrangements and the likely impacts for earnings and cost savings arising from each, so as to deepen its understanding of the scale of the differences between the parties.

iii. The NIB proposes that this analysis of various elements of the change agenda would be undertaken, on its behalf, by a suitably qualified person using such technical assistance as necessary to clarify the scope and value of a number of issues in dispute.

iv. Having completed the above steps, the Body proposes to meet with the parties on Wednesday, the 28^th November, to assess progress and to issue a final statement to the parties not later than Monday, 3^rd December.

- The Body would request the parties to desist from taking any actions with might hinder the effectiveness of the above process and requests that

i. No industrial action would be taken over the period in question:

ii. No new revised contracts should be issued

iii. For the duration of this process the relevant terms for all employees should be those agreed through collective bargaining.

iv. Contracts will be further amended to take account of any agreed outcome from this process.

- Accordingly the NIB invites the parties to engage meaningfully with each of the phases of the above process.

16 November 2007

Ends.