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Buyout rejection threatens sale of TEAM

February 15, 2011

By Staff Reporter

By Andrew Bushe

DUBLIN – Further efforts are to be made this week to provide “clarification” that may rescue the crucial sale of the crisis-hit TEAM maintenance subsidiary of Aer Lingus following the decisive rejection by the 1,500-strong workforce of their “letters of comfort” buyout deal.

After a lengthy consultative and balloting procedure, the workers voted by 59 percent to 41 percent against the _54.6 million package, which would have meant average payments of _35,000, with some staff getting more than _60,000.

The Danish company FLS, which operates aircraft maintenance facilities at three British airports, has suspended its purchase negotiations of TEAM following the vote but has said it is still interested.

Informed sources, however, say it is unlikely that FLS, which has been attempting to finalize a deal for five months, will wait around much longer than the end of June.

TEAM has lost _100 million since it was set up and Aer Lingus officials say there is no future for it as part of the airline.

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Management sources said there were no jobs for the TEAM workers in the parent airline and there was no more money available to increase the buyout deal. Public Enterprise Minister Mary O’Rourke has also stressed that there was no more money available.

The letters, given to the workers in June 1990, were in effect a guarantee of a state job for life.

All employees were written to personally and told that while they would be required to work in TEAM, “you will, however, remain a member of Aer Lingus staff and will retire as a member of Aer Lingus staff, retaining full Aer Lingus retiree conditions.”

The new clarifications are expected to concentrate on pension aspects of the buyout, but with such an overwhelming rejection of the offer, a lot of new persuading and interpretation will be needed when the talks get under way between the unions and management.

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