February 16, 2011
By Staff Reporter
By Andrew Bushe
DUBLIN – The marathon union negotiations on the takeover of the TEAM aircraft maintenance subsidiary of Aer Lingus are finally over, with 72 percent, or 1,100 members of the workforce, accepting a _54 million deal to buyout jobs that had once guaranteed them a job for life with the state airline.
The Danish company FLS is now expected to restart due-diligence investigations of TEAM, which were suspended when a first vote of the 1,550 workers voted by only 41 percent to accept the deal.
The buyout terms will give some workers more than _60,000 in cash payments, and will keep then in the Aer Lingus pension plan. They will also continue to be entitled to free flights on Aer Lingus A aircraft.
The 8-year-old TEAM has been a financial disaster for the company, and now the takeover is due to go through, the airline can continue its search for a strategic partner that would spread its worldwide links.
TEAM cost about _60 million to set up, received _64 million in 1994 in the form of a non-refundable loan, and has accumulated losses of _60 million in the seven years since it was set up.
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The 72 percent acceptances may rise during the week as other workers opt to go with FLS, which operates maintenance facilities at airports in Britain.
Those who do not accept, will go back to the airline. There are jobs for about 40 and the company says redundancies will be negotiated with the rest.
Public Enterprise Minister Mary O’Rourke described the vote as “sensible” and said she hoped further acceptances would come in.
TEAM management consultant John Behan said he was very pleased the result.
“It means a new beginning for TEAM and the beginning of security for the TEAM employees,” he said. “We are convinced that it is enough to seal the deal. The profile of skills is there. We understand there are a large number of people on holidays who haven’t sent in their acceptances yet and they may still arrive. There are people in the plant still asking about pension and taxation issues so we expect the figure to rise.”
Trade union coordinator Eamon Devoy said FLS had a good reputation and working relationship with trade unions in other countries and they looked forward to working with it in Ireland.