Almost 400 members of the Irish Airline Pilots Association (IALPA) in Ireland's state-owned airline, Aer Lingus, are to receive a pay award averaging 7% after accepting the findings of an independent pay review on 5 July 1997. The review, which means a restructuring of pilots' pay in the airline, was carried out by Phil Flynn, the former general secretary of the Irish Congress of Trade Unions (ICTU) and the current chair of the state-owned ICC Bank.
In July 1997, pilots in the Irish state airline, Aer Lingus, accepted a pay review which gives them average pay increases of 7%, on top of a 5% award which they received last year, and in addition to increases due under Ireland's Partnership 2000 national wage agreement.
Almost 400 members of the Irish Airline Pilots Association (IALPA) in Ireland's state-owned airline, Aer Lingus, are to receive a pay award averaging 7% after accepting the findings of an independent pay review on 5 July 1997. The review, which means a restructuring of pilots' pay in the airline, was carried out by Phil Flynn, the former general secretary of the Irish Congress of Trade Unions (ICTU) and the current chair of the state-owned ICC Bank.
Mr Flynn was asked to carry out his review in the wake of an industrial dispute in September 1996. The pilots had demanded the full implementation of the findings of a jointly agreed pay tribunal, which had recommended a straight pay increase of 17% for the pilots on top of any increases due under national wage agreements. The company said that it could not afford to honour the full award.
Following the intervention of the Labour Court, the pilots accepted a down-payment of 5% of the 17% award with both parties agreeing to avail of the services of an outside expert to review the outstanding 12% of the total award. Mr Flynn was chosen to carry out the review. In arriving at his findings, he commissioned a consultant's report which warned that Aer Lingus was exhibiting the early signs of a group in financial difficulty.
As a consequence, Mr Flynn did not propose that all of the outstanding 12% of the original 17% be paid. Instead, he suggested an overhaul of pilots' pay, specifically addressing the pay of junior pilots, which the company had agreed needed urgent examination. A new junior scale was proposed, raising the starting annual pay rate from IEP 20,000 to IEP 26,000.
The new pay-range for senior pilots will be between IEP 43,800 to IEP 77,500 per year over a 28-year period. At the top of the scale, meanwhile, there is to be a once-off scheme which will allow 53 captains to take early retirement but continue to work on contracts worth IEP 70,000 per annum.
Overall, the average increase proposed comes to around 7%. When added to the original 5% received last year, the pilots effectively secured 12% of the original 17% award, exclusive of national wage increases due under Ireland's national Partnership 2000 wage agreement (IE9702103F).
Eurofound recommends citing this publication in the following way.
Eurofound (1997), Aer Lingus pilots accept pay review, article.
