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Aer Lingus tells staff "pay frozen until cost savings implemented"

Aer Lingus has today (2 October 2007) moved to impose an immediate pay freeze on all staff pending agreement on implementation of the Programme for Continuous Improvement (PCI 07). This means that the remaining increases of 5% under "Towards 2016" and other annual increments due of 2.5% will not now be paid until further notice.

PCI07 is designed to bring about essential cost savings and work practice efficiencies in order for the company to grow and remain competitive. The programme was first presented to unions in December 2006 and was endorsed by the Labour Court in March 2007. A pay freeze on management salaries has already been in place since the start of the year.

Commenting, Dermot Mannion, Chief Executive said: "Despite exhausting all the available dispute resolution mechanisms of state, the unions have simply refused to co-operate in the implementation of PCI. Aer Lingus cannot continue to wait indefinitely to achieve essential savings. It is within this context that the decision to suspend increases has been taken. Management remains open to positive talks with unions at the earliest possible date but only if there is a real willingness to implement PCI immediately."

Dublin, 2nd October 2007

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