Trade unions in the state sector are set to look for employment commitments similar to those made in January 2004 by the Minister for Transport, Seamus Brennan, in a bid to defuse a major dispute over the future of the state-owned airport authority, Aer Rianta. The government wants to split the company, which operates out of Dublin, Cork and Shannon airports, into three separate entities. The trade unions are opposed to the plan and are demanding a variety of guarantees with regard to employment, pay and conditions. A threat to close the airports for two hours on 21 January, aimed at disrupting a meeting of EU justice ministers in Dublin, during Ireland’s six-month EU Presidency, was narrowly averted.
Efforts made in early 2004 by the Minister for Transport to avert industrial action in the state-owned airport authority, Aer Rianta, may have wider implications for job security across Ireland’s state sector.
Trade unions in the state sector are set to look for employment commitments similar to those made in January 2004 by the Minister for Transport, Seamus Brennan, in a bid to defuse a major dispute over the future of the state-owned airport authority, Aer Rianta. The government wants to split the company, which operates out of Dublin, Cork and Shannon airports, into three separate entities. The trade unions are opposed to the plan and are demanding a variety of guarantees with regard to employment, pay and conditions. A threat to close the airports for two hours on 21 January, aimed at disrupting a meeting of EU justice ministers in Dublin, during Ireland’s six-month EU Presidency, was narrowly averted.
The Minister, in a letter sent on 9 January 2004 to the general secretary of the Irish Congress of Trade Unions (ICTU), David Begg, dealt with the job security issue by simply stating: 'there will be no compulsory redundancies in the state airports post restructuring'. The commitment was accepted by all of the unions represented at Aer Rianta except by the largest, the Services Industrial Professional and Technical Union (SIPTU).
SIPTU demanded further assurances, which prompted a new letter on 19 January from the Minister to the union’s president, Jack O’Connor. This second letter seemed to step back somewhat from the basic commitment to job security made the original letter to Mr Begg. In the second letter, the Minister said that the 'appropriate' way to reflect his commitment to maintain job security and quality of employment 'post restructuring in legislation, collective agreements and/or employment contracts remains to be finalised between us'.
Fear has been expressed that the effect of the Minister’s position - or any agreed legislative action based on such commitments - could impose an extra financial burden on other state companies that might, in future, opt for major restructuring or a change in ownership. It is likely that such 'guarantees' would have to be 'bought out' in much the same way that occurred in the case of the former state-owned aircraft maintenance company, TEAM Aer Lingus, when it was sold to the private sector in 1998 (IE9808155F).
The norm in the Irish state sector is that redundancies are always voluntary. However, this is on the basis of standard practice and is not enshrined in law. A legislative commitment, if that is what emerges from the Aer Rianta dispute, could add an expensive price tag to modernisation programmes across the sector.
The Dublin-based Industrial Relations News (IRN) weekly reported that senior figures at government level were very concerned about the implications of the commitment, particular as it was expressed in the Minister's first letter. Whether the 19 January letter effectively 'waters down' the 9 January statement remains unclear. Any legal test of the first letter would have to overcome the argument that the commitment it contains amounts to an unreasonable or unrealistic guarantee.
Eurofound recommends citing this publication in the following way.
Eurofound (2004), New template for public sector employment security?, article.
