Wage Cuts Look To Be On The Horizon

Aer Lingus Chief warns that wage cuts may be coming. After word from Chairman Colm Barrington stated that wage cuts were most assuredly on the way strikes are feared. Those comments came after the airline revealed the €93m loss for the first half of the year. The restructuring plan is expected to be announced within 2 months, and it appears that jobs may be lost as part of the new plan.
As of right now there are no job loss numbers being handed out. There appear to be some numbers to look at though for instance, the ground-handling staff could experience a 17 pc cut in base pay under the plan. The cabin crew which would entail pilots, stewards, stewardesses and co-pilots may be looking at cuts to the allowances and bonuses rather than their base pay. Mr. Barrington isn’t giving a figure as of yet to the exact numbers but there are speculations that between 500 and 1,00 jobs are at risk.
There is a new Chief Executive due to start on 9/01/2009-Mr. Christopher Mueller. Mr. Joe Gill who is a stockbroker at bloxham has estimated that 800 jobs lost will be the minimum requirement if the airline wants to remain competitive. The economic plan for the company will not be ready for a little while longer. It appears we may have to wait approximately 2 months to know what will be occurring.