Term Paper on "Disciplinary and Personal Grievance Procedures"

Term Paper 9 pages (2658 words) Sources: 2

[EXCERPT] . . . .

Aer Lingus, the flag carrier of the Republic of Ireland, is based at the Dubling Airport (2008). Founded in 1936, it operates 41 airbus serving Europe, Africa, North America and the Middle East. It is 25.4% government-owned. It was a member of the Oneworld airline group until March 31, 2007. In 2006, tt earned Euro 1.1 billion and moved 8.6 million passengers. It maintains a 4,000 workforce (Aer Lingus), with which the company would be embattled.

The union of baggage handlers and check-in staff threatened to stage a strike if their request for pay adjustment was not met (Airline Industry Information 2001). These employees urged management to raise their pay level to that of the cabin crew. The company reportedly denied the request. The clerical and operative staff had already reached a deal with the airline company about pay (Airline Industry Information).

This deal was the acceptance of a basic pay by the operating staff early in the decade (Airline Industry Information 2000). The staff consisted of catering workers, baggage handlers and drivers. The cabin crew engaged in another labor dispute with the company, which was scheduled to undergo a privatization process in 2001. The revised contract for the operation staff offered a pay increase of IEP 25 a week, improved shift allowances and a lump sum payment of IER 500. Local agreements would be added to the basic provisions. The union agreed to suspend strike action with the new pay offers from the company. On the other hand, the Irish Labor Relations Commission would mediate in the pay negotiations between the company and the cabin crew. Two-thirds of Aer Lingus' 1,500 cabin crew made up the Impact union. On the other hand, members of the union entered exploratory talks with management after two-hour work stoppages over the issue of low pay. A spokesman for Aer Lingus said that further talks would be held with the clerical and catering staff to avert further service disruption similar to the two-hour work stoppages (Airline Industry Information).

The dispute between management and the cabin crew centered on the Impact union's demand for a 50% increase on the award handed down by the labor court (Sunday Mirror 2001).Aer Lingus spokesman said that giving in to the demand would require an additional 3 million pounds on the pay of the cabin crew. This would be in excess of the 5.7 million pounds already required by the award handed down by the labor court. However, Impact's assistant general secretary Christina Carey said that the management only asked them to submit proposals with costs. Management responded only with inflated figures, according to her. SIPU cabin crew members, on the other hand, rejected the new pay scales and working conditions, which were recommended by the labor court. The British Midland ground operations staff in Dublin would thus resume industrial action (Sunday Mirror).

The Oneworld Cockpit Crew Coalition of pilots from 10 international carriers bewailed Aer Lingus' union-busting tactics (Business Editors 2002). The new working conditions imposed by management would reduce their rest period in proportion to their time on duty. It also began suspending some of them for refusing to comply with these new working conditions. The pilots cried out against the harassment and served a seven-day notice of a one-day strike if their working conditions would not change. They described these working conditions as against their best interests and those of the traveling customers. They said that Aer Lingus CEO Willie Walsh should stop these pushing and intimidating tactics as he was a pilot himself (Business Editors).

During their meeting in Helsinki, Finland, members of the Coalition discussed the many personnel and industrial relation issues of their employer-carriers (Business Editors 2002). The pilots of LanChile, Cathay Pacific and Iberia also complained of similar union-busting activities by their employers. The members made a unified call to the management of Aer Lingus to come to the bargaining table and resolve the dispute with its pilots. They said that a negotiated solution alone would serve their best interests and those of the traveling public and the airline's future itself. Otherwise, more adverse and destructive consequences could be expected by everyone (Business Editors).

The pilots wanted all recruitment be done through Dublin and the staff taken to Belfast (RTE 2007). They reasoned that all collective agreement applicable to the Republic should be applicable to Belfast. They likewise urged that all contracts and disputes on Belfast be governed by the laws of the Republic. Furthermore, they wanted pilots to be notified of all vacant pilot positions according to a merit-based seniority list. CEO Dermot Mannion said that conducting all recruitment through Dublin would deny equal job opportunities to local residents in the North. He thought that the pilots' demand would bring in restrictive practices into Belfast and create new ones. If this happened, it would not be a Belfast base but a defective arrangement. The company accused Impact members and the Irish Airline Pilots Association of hindering their plans to establish the Belfast base to protect their own interests (RTE).

While mediation talks raged, only 15% of Aer Lingus' passengers managed to catch their respective flights during that one-day strike (Archives CNN 2008). The airline said it was closing all flight schedules until the appropriate solution was found. Experts said approximately 100,000 passengers could be displaced or affected during the strike and cost the airline roughly 40 million euros. The strikers opposed the implementation of new work conditions, which they considered impractical and potentially risky. Seven pilots who refused compliance were suspended. The airline responded by stopping all of the pilots' wages. Some 20 pilots came to work but were informed by management that they were not flying. National Industrial secretary of SIPTU Noel Dowling, representing Aer Lingus' ground, expressed members' fear that all the unrest would result in the complete collapse of Aer Lingus. Chief Executive John Dunne of the Chamber of Commerce of Ireland commented that such a collapse would be most disastrous to the Irish economy (Archives CNN).

Ryanair airline increased its number of flights between Dublin and London to fill in cancelled Aer Lingus flights (Archives CNN 2008). Aer Lingus Corporate Affairs Director Dan Loughrey described the situation as a "failure to face up to change." He said the company had no intentions of abolishing the airline. In the meantime, the number of visitors to Ireland decreased by 400,000 after the September 11 attacks and following the general economic depression (Archives CNN).

Rescue and Survival Plan for Aer Lingus

The Labor Relations Commissions evolved the plan (Airline Industry Information 2001). It was to free wages until April 2003 and reduce overtime pay from double-time to time-and-three-quarters. It also restrained unions from filing suits in the labor court for 15 months if previously agreed pay increases could not be given. The company said it needed to close 2,026 jobs and that approximately 800 employees had already applied for voluntary redundancy (Airline Industry Information).

Almost all of pilots at Aer Lingus approved and endorsed the settlement proposed by the Commission (Airline Industry Information 2002). It guaranteed rest periods for the pilots for 12 hours or the equivalent of their last shift plus 2 hours. It also restricted the number of times they would work at only 10 hours rest between shifts. The settlement plan covered days-off, early duty and rest periods on transatlantic flights. The pilots, in return, must subscribe to and abide by a company survival plan (Airline Industry Information).

That survival plan entailed the displacement of pilots on grounds of redundancy (Airline Industry Information 2002). It required the loss of 156 pilots and had already separated 70, 10 of whom were served notices of compulsory redundancy. Talks between management and union Impact failed to achieve a solution. Unionists believed that instead of terminating pilots, early retirement could be offered to 20 senior captains in order to realize some savings (Airline Industry Information).

Aer Lingus was deep in debt and scheduled for privatization the year following this rush of disputes (Airline Industry Information 2002). It seemed unable to manage to cut down losses. In addition, it had to cope with the brunt of the tough operating environment after the 9/11 attacks, increased competition, industrial turbulence, the consequences of the 2001-foot and mouth disease outbreak on travel, squabbles in the boardroom and the downward global economic trend. As a response to these calamities, management came up with a survival plan in October 2001, which required reducing the workforce by a third (Airline Industry Information).

New Base at Belfast

The bitter dispute over pay and working conditions for pilots could have stalled thousands of Ulster air travelers for several weeks (Tilson 2007). The lockout was, fortunately, averted by an agreement among the Labor Relations Commission, Aer Lingus management and the pilots. Impact included IALPA, the union of Irish pilots. It said it reached an agreement with management on pension conditions and promotions, based on seniority at the Belfast hub. It also announced that the agreement would become operational that December. Impact… READ MORE

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