Aer Lingus pilots will soon be voting on a proposed solution to their ongoing pay dispute. This event is of particular interest not only to the airline’s management but also to passengers who have travel plans during the busy month of August. Additionally, other employees at Aer Lingus are closely monitoring the situation. According to the unions, it’s not a question of whether an extraordinary pay rise to pilots could impact other staff members, but they confirm that internal agreements specifically account for such possibility.
This doesn’t necessarily mean the airline could face more industrial troubles. Instead, an end to the pilots’ dispute could trigger a new cycle of industrial relations, with other groups trying to recoup perceived disadvantages.
The trade union Siptu advocates for approximately 1,200 Aer Lingus employees across guest services, baggage handling, aircraft loading and cleaning and more. Its aviation sector organiser, Niall Phillips, confirmed a three-year deal with the airline made towards the end of 2022, promising a 12.25% pay rise for staff.
Phillips explained that the agreement includes a clause enabling Siptu to renegotiate should another employee group secure a higher pay rise without any balancing measures. It’s believed cabin crew have a similar arrangement.
In the Labour Court’s recommended proposal, pilots would enjoy a 17.75% pay rise running until July 2026. If the pilots accepted the offer, various unions at Aer Lingus, including Fórsa and Connect, would strategise on their next move.
In comparison, the offer to pilots appears more generous than the agreements reached with other groups. However, several industrial relations experts argue that different timescales apply. The agreements for Siptu members and cabin crew are valid until the end of 2025, but the pilots’ offer extends into 2026.
Some people argue that there isn’t much disparity between the increase prospects of the various groups when considered on a yearly basis. However, the arrangements aren’t exactly similar. Phillips pointed out that the Siptu members are set to get a 1.5% raise – about €750 – in October, but this won’t recur or be pensionable. For pilots, the 1.5% hike planned for October will be ongoing.
The resolution timing of the pilots’ dispute might circumvent any immediate repercussions from factions seeking equivalent agreements. A key player in the industrial relations landscape with a wealth of experience in the aviation industry mentioned that the sequence of post-pandemic settlements in this sector is nearing its end, with pilots almost being the last group remaining.
Besides being the parent body of the pilots’ union Ialpa, Fórsa also signifies Aer Lingus’ cabin crew. It has brokered a deal worth a 12.25% increase till 2025 end, better credits, commission, along with a one-time tax-free voucher payment this year. The union has also finalised a fresh collective deal with the Irish Aviation Authority.
Some insiders suggest that under normal circumstances, successor agreement discussions would initiate next year, which could potentially address catch-up claims.
Established individuals in the industrial relations scene stated that cabin crew and other clusters were keenly observing the pilots’ developments.
“The post-pandemic industrial relations might be stabilising. However, the situation can quickly become volatile, and presuming everything will be perfect in the long run would be naive,” one source commented.
But how about the wider economic effect of the 17.75% wage proposal for pilots? Similar to within the airline, few monitor the results of industrial disputes as closely as other trade unions. A settlement beyond the standard, secured by a group with significant clout, often becomes a goal for others in the same industry or with the same employer to replicate.
For numerous years, the Government, as the largest singular employer, has had concerns about potential “contagion” within its labour relations coverage of the public service. These concerns caused the government to seek collective agreement with all public service unions concerning wages since 2010. This was particularly evident in 2016, when a €50 million agreement following a dispute with the gardaí threatened to destabilise the entire public service agreement at the time. As a rapid response, the government at the time extended a pay increase of €1,000 to public sector employees earning up to €65,000 to maintain the broader agreement.
The current worry is whether the proposed agreement for pilots’ pay will ignite a season of industrial unrest, with other workers hoping to negotiate better terms. Professor Michael O’Doherty from the law department at Maynooth University, a recognised expert on the industrial relations matter, noted the crucial fact that Aer Lingus is a private sector firm. He pointed out that industrial strikes are infrequent in Ireland and large-scale work stoppages in the private sector are even more uncommon. While possible, it is more probable that any further claims will lead to individuals privately negotiating for higher pay or simply changing jobs.
Professor O’Doherty further observes the potential for dispute in large private sector industries, such as technology or pharmaceuticals, which could result in high profile and negative implications. However, these sectors are not predominantly unionised. Trade unions negotiated a 10.25 per cent salary agreement in the strongly unionised public services field, which is valid until June 2026. Union representatives in the public service believe this agreement will withstand its value considering a decrease in inflation. Nonetheless, some people speculate that the Labour Court’s recommendation for air pilots might establish a new standard for pay increments.
Socialist Party TD Mick Barry has expressed his thoughts concerning this matter: “Considering a time when corporate profits are at an all-time high, and wages have been generally suppressed below inflation rates, it seems that the Government, employers, and the corporate media were strongly against the pilots’ 24 percent wage increase claim for fear of contagion.”
“Even if the proposed 17.75 per cent wage increase is consented on, it still carries the possibility of setting a fresh standard rate, demonstrating that labour union activism can be rewarding. As a result, other airport employees may start demanding analogous raises, possibly leading them to reevaluate their stance on wage matters. In my perspective, there’s absolutely nothing wrong with this,” expressed Owen Reidy, the Ictu General Secretary.
Reidy has also endorsed his affiliate bodies within the private sector, advising them to pursue pay augmentation between 4 and 6 per cent, provided it’s feasible. These forecasted raises would enable workers to stay ahead of inflation rates within the year. Nonetheless, Reidy reiterated the fact that despite the proposed pay increases, the price of goods and services has not shown any signs of falling, just not escalating as rapidly as witnessed in the past.
Neil McDonnell, Chief Executive Officer of the business group Isme, however, shared his belief that the Labour Court’s recommendations concerning Aer Lingus wouldn’t result in any major repercussions. McDonnell said that if any knock-on effects were to be felt, they would most likely be in profitable businesses vying for essential staff.