Labour Court has previously criticised what it said was a ‘lack of realism and common sense’ during talks
The rejection of the interim proposal in a vote by the main pilot union follows months of tortuous negotiations between the Irish Airline Pilots’ Association (IALPA) and the airline.
It also raises the likelihood that a deal won’t be reached during the summer, with the two sides still leagues apart in terms of demands. Aer Lingus said it remains available for talks.
The Irish Airline Pilots’ Association has been holding out for a 27pc pay increase over three years, while Aer Lingus has offered 12.25pc. The proposal by the carrier included 3.75pc to pay for a 2019 crewing agreement, while the union’s demand included 7pc to cover the cost of the 2019 deal. That meant the proposed net increases from the airline would be 8.5pc, compared to the 20pc sought by the union.
An independent Pilot Pay Tribunal had last year recommended a 12.25pc increase in consolidated pay and a 1.5pc rise in unconsolidated pay for the pilots.
The Labour Court said there was a “lack of realism and common sense” during efforts to reach a pay deal with the pilots.
“Aer Lingus notes the outcome of the ballot rejecting the interim recommendation issued by the Labour Court,” said a spokesperson for the airline. “Notwithstanding the rejection of the Labour Court recommendation, Aer Lingus remains available for direct discussions with IALPA.”
IALPA is expected to issue a statement later today.
The failure to seal a pay deal with the almost 800 pilots has also seen expansion plans at IAG-owned Aer Lingus curtailed. The chief executive of Aer Lingus is Lynne Embleton.
The airline had expected to take delivery this year to two new Airbus A321XLR jets. But both have now been made available to other carriers – including Iberia – that are part of the IAG group. IAG also owns British Airways and Iberia. Aer Lingus was expected to get six of the new jets, which can be used on transatlantic services.
IAG chief executive Luis Gallego has previous warned that capital investment at Aer Lingus would be stalled until a pay agreement was reached.
The interim pay proposal from the Labour Court was rejected by ballot just over a week after it was recommended by the court and accepted by Aer Lingus management.
The turnout for the pilot ballot was almost 98pc and 94.4pc of those that voted rejected the proposal.
The Labour Court has recommended an interim plan that would see the almost 800 pilots receive a 9.25pc increase, with the remaining increase attached to the cost of the crewing agreement to be sent back to the Workplace Relations Commission (WRC) to be thrashed out by the end of August.
When it was introduced in 2019, it was accepted that the cost of the crewing agreement would be shouldered by the pilots.
Ten days ago, Aer Lingus accepted the recommendations put forward by the Labour Court.
“Aer Lingus accepts the content of the recommendation that was issued and will look to take the interim steps outlined within it,” it said. “Aer Lingus looks forward to re-engaging on the issues in the WRC as recommended by the Court.”