Fine Gael Enterprise Spokesman Leo Varadkar TD has called on the Tánaiste to tell Aer Lingus management that she will not hand over €10 million in taxpayers’ money to subsidise bogus redundancies at the airline.

Earlier this week the airline announced it would lay off a thousand members of cabin crew and hire 750 on inferior terms and conditions. Cabin crew will be paid two weeks per year of service in statutory redundancy, 60% of which the company intends to have refunded from the social insurance fund. Cabin crew with less than two years service will get nothing.

“These are not real redundancies. If the company wants to buy out the terms and conditions of staff it should be done by agreement and the company should use its own resources.

“Taxpayers should not be landed with the bill. This type of bogus redundancy scam has been going on for too long. This is the last straw. The Tánaiste should immediately inform Aer Lingus that on this occasion she will not pay, and that the law will be tightened accordingly.

“The Tánaiste should also ask the Labour Court to examine the matter and determine whether this falls under the definition of an exceptional collective redundancy. If it does, the Government will not have to pay up.”

Ends

Note for Editors: One thousand staff will be made redundant. Assuming an average of ten years’ service, and applying the statutory two weeks’ redundancy, the Government will have to pay 20,000 weeks at 60% of salary.

Based on average salary levels of €45,000 per annum this will cost taxpayers in the region of €10.3 million, with the airline planning to rehire 750 of the staff.