Dáil Éireann díospóireacht -
Tuesday, 24 Feb 1998

Vol. 487 No. 6

Priority Questions. - TEAM Aer Lingus Sale.

Ivan Yates

Ceist:

24 Mr. Yates asked the Minister for Public Enterprise the position on the proposed sale of TEAM Aer Lingus; if the Government as shareholder intends to pursue this proposed sale; if she will set out a proposed timescale for the completion of the consultative process which she has embarked upon in this regard; if the proposed purchaser has had direct dialogue with the group of trade unions in relation to their specific issues of concern; and if she will make a statement on the matter. [4596/98]

Minister for Public Enterprise (Mrs. O'Rourke)

The question of the possible sale of TEAM to FLS has been discussed in this House on a number of occasions very recently, and I have set out both the general position and the position of the Government. I have stated quite clearly there will be no strategic developments in relation to TEAM without the concurrence of TEAM employees. There has not been any change in this position.

All the issues surrounding the possible sale of TEAM to FLS are currently being addressed by management and employee representatives and are varied and complex. I understand a number of meetings have been held under the chairmanship of the agreed facilitator, Mr. Gerard Durcan, who will determine the timescale for these discussions.

Discussions held yesterday and today were attended by representatives of all unions in TEAM, that is, the Services, Industrial, Professional and Technical Union, SIPTU; the Irish Airlines Executive Staff Association, IAESA; the Amalgamated Electrical and Engineering Union, AEEU; the Automobile, General Engineering and Mechanical Operative Union, AGEMOU; the Technical, Engineering and Electrical Union, TEEU; the Amalgamated Transport and General Workers Union, ATGWU; the National Union of Sheet Metal Workers of Ireland, NUSMWI; the Institute of Engineers of Ireland, IEI; and the Union of Construction, Allied Trades and Technicians, UCATT. I understand a meeting will take place next Friday between FLS and the trade unions in TEAM.

It would be inappropriate to comment on specific issues in advance of receiving any formal proposal from the board of the Aer Lingus group in the matter. As I said, I have indicated to both management and unions that any agreement to sell TEAM will require the agreement of the workforce in the company.

Mr. Yates

Has the Government obtained any legal advice on the status of the letters of understanding issued to the workers, which specifically referred to the 49 per cent/51 per cent retention of State shareholding? Does it allow the Government as the shareholder to sell 100 per cent of the shares?

Mrs. O'Rourke

The Government has not sought legal advice on that. However, I am aware the groups of unions have employed legal representatives to probe those issues. On the letters to members over the years, I understand agreement has been reached that if the sale does not proceed, the path to court action indicated earlier will be pursued by the unions.

Mr. Yates

Will the Minister confirm that the memorandum of understanding between FLS and Aer Lingus relates to the 100 per cent shareholding? In those circumstances it would be prudent to obtain legal advice on the crucial issue of whether the letters allowed or prohibited such a sale.

The Minister outlined the general position. There is a fear on this side that the general position will be outlined before 11 March, but the specific position will be outlined by the Government after that date. Workers in Dublin Airport are concerned about this issue in the context of the by-election. Is it the Government's position that the memorandum of understanding is a sale which the Government could authorise?

Mrs. O'Rourke

The memorandum of understanding was the initial phase in the process. An arrangement for a deal has not yet come to me and my Department and I have not referred such an arrangement to the Cabinet. Each union is now part of the talks. The timescale for the discussions in the context of the agreement between the unions and Aer Lingus will be determined by the facilitator. The process shall be deemed to have concluded only when a settlement has been agreed on all the issues or both parties or the facilitator declare that the process is at an end. All parties are in talks and we must await developments. The talks centre on information dissemination services, compensation, early retirement packages, pensions, employment in the airline, airline status, concession travel, pay increments, Aer Lingus shares and local issues.

Mr. Yates

I note the Minister steadfastly refused to state whether she is a proponent or opponent of the deal.

Mrs. O'Rourke

There is no deal.

Mr. Yates

She sought to cloud the issue by mentioning talks and other aspects. The position will become apparent once the consent of the voters of Dublin North is no longer an issue.

What steps has the Minister taken in terms of her concern for the workers to seek assurances from the chairman of Aer Lingus on behalf of the board that FLS will give guarantees of job security, particularly in the maintenance division? If that were the case, people could be assured on entering the talks that their sacrifices on pay and conditions would help to secure their futures. Will the Minister outline the discussions she had with the chairman? Has she met representatives of FLS at any stage or discussed this matter with them? What efforts has she made to seek job security and continuity of pay and conditions for the staff of TEAM Aer Lingus?

Mrs. O'Rourke

The Deputy said I had not indicated whether I was a proponent or opponent of the deal. However, there is no deal for me to oppose or support. Until such a deal is proposed and it has been given political consideration, I cannot have a position on it. A deal will involve many complex issues.

I meet the chairman of Aer Lingus regularly. I met him twice in the past three months and I have repeatedly stressed that the Government's emphasis is on the maintenance and growth of employment and on the concerns of the workforce.

Mr. Yates

Did the Minister receive any assurances?

Mrs. O'Rourke

The chairman told me that is also the company's concern and I have faith in him. The Deputy said he also had faith in him during the recent debate on aviation. Mr. Bernie Cahill is a person of great worth and is most capable. I have faith in his capabilities to take on board the views I expressed.

Mr. Yates

I understand the due diligence process is to be completed on 26 February. The Minster referred to the meeting with FLS. What timeframe has been set by Aer Lingus and the Government on consideration of this matter? When one proposes to purchase a house, a contract signing date is set. What parameters in terms of time have been set for this matter? As part of the memorandum of understanding, what does the Minister consider are the next steps after the due diligence process has been finalised? Does the Government have an indicative date of when it wants this matter completed?

Mrs. O'Rourke

No indicative date has been stated because part of the agreement between the unions and Aer Lingus is that the timescale for the discussions will be determined by the facilitator. That was agreed by the company and the unions. The facilitator is on the spot and deals with the members of each union and the management of the company.

Mr. Yates

It will be well after the by-election.

Mrs. O'Rourke

It would be foolish of me to intervene when the workers asked that the facilitator determine the position.

Mr. Yates

Can the Minister confirm that it will be after the by-election?

Mrs. O'Rourke

The agreement between the unions and Aer Lingus plc, which is available for public scrutiny, states that the timescale for the discussions will be determined by the facilitator.