Liam Kavanagh
Ceist:21 Mr. Kavanagh asked the Minister for Tourism and Transport his views on whether Aer Lingus are in a position to create new jobs and new opportunities for employment in aircraft maintenance under its present structure.
Ceisteanna — Questions. Oral Answers. - Aer Lingus Maintenance Facilities.
Dick Spring
Ceist:23 Mr. Spring asked the Minister for Tourism and Transport if his attention has been drawn to the fact that, due to a shortage of maintenance and engineering facilities in Ireland, Aer Lingus are at present contracting out the maintenance of aircraft to foreign countries; and if he will make a statement on the matter.
Seán Ryan
Ceist:49 Mr. Ryan asked the Minister for Tourism and Transport if he will make a statement on the current impasse between the Aer Lingus Trade Union Group and Aer Lingus management regarding the proposals to set up the subsidiary TEAM Aer Lingus.
I propose to take Questions Nos. 21, 23 and 49 together.
Aer Lingus have sufficient aircraft maintenance staff to maintain their own fleet. The company put together an imaginative proposal, with IDA support and with the approval of the Government, to create major expansion of employment in aircraft maintenance in Ireland.
Through the development of a £35 million aircraft overhaul facility at Dublin Airport, the Aer Lingus strategy entails securing major contracts from foreign airlines for aircraft maintenance. When the new hangar complex, currently being built, is operating to capacity, external work will account for about 75 per cent of the total business. For this reason and to provide a totally customer oriented business focus on this important new enterprise, Aer Lingus see it as necessary to reorganise the maintenance activity into a separate business. They do not consider it possible to create such expansion within the present structure of aircraft maintenance as a department of the airline. Aer Lingus have, therefore, established a new company TEAM Aer Lingus — the experts in aircraft maintenance — to undertake all maintenance and engineering activities, including the operation of the new hangar facility.
A previous example of the need for a change in structure was the setting up of Airmotive Ireland. When this engine overhaul activity was carried out at Dublin Airport, 150 people were employed on that work. With the independent focus Airmotive Ireland was able to bring to this competitive international business, the employment figure has now risen to 650. Airmotive has also entered a joint venture with the major US engine manufacturers, Pratt & Whitney, to create an additional 300 plus jobs. Aer Lingus would expect the new company TEAM Aer Lingus to achieve the same level of success.
I am aware that an imbalance has arisen between the amount of aircraft maintenance work required and the capacity of Aer Lingus to do all the work involved. Aer Lingus have informed me that they want to correct this imbalance through recruitment and training of additional staff. Unfortunately, this recruitment has run into difficulties in the context of the dispute over the formation of the new company, TEAM Aer Lingus. A direct result of this dispute has been that work has had to be subcontracted abroad. To date, over 100,000 man hours of work have had to be subcontracted.
As soon as the dispute is resolved, Aer Lingus intend to commence recruitment as fast as the staff can be trained and absorbed. It is expected that the new company will recruit over 300 staff within the next 12 months. The parties involved in trying to resolve the dispute are aware of the gravity of the situation.
The dispute is being dealt with by the Labour Court at the request of Aer Lingus, ICTU and the trade unions involved. I hope that the dispute can be resolved quickly.
I too hope, that with the involvement of the Labour Court that this dispute will be resolved quickly. Given the current shortage of skilled staff in Aer Lingus, the abundance of contract work and the decision of the company, referred to by the Minister, to subcontract maintenance work, would the Minister request the company to continue to employ the 64 skilled hostesses who are under threat of dismissal, as this single act alone would lead to a drastic improvement in the industrial relations climate in Aer Lingus? I ask the Minister to take note of this suggestion.
I note the Deputy's comments but having regard to the fact that the dispute is currently being dealt with by the Labour Court at the request of Aer Lingus, the ICTU and the trade unions involved, it would be best if I did not elaborate on this matter too much.
In fairness, if that step had been taken long ago this dispute might have been resolved by now.
Questions, please.
It is a disgrace that to date over 100,000 man hours of work have had to be subcontracted at a time when there are skilled workers sitting at home drawing their wages.
I am still awaiting questions.
It is an utter disgrace.
Let us now proceed to deal with Private Notice Questions.