Redundancy – Irish style

A final decision has yet to be made on whether a redundancy option for workers at Aer Lingus is legal or not (Six One, 8th report).

The deal would see employees take a nine weeks pay per year redundancy package and then return to the airline under a new contract with lower pay and conditions.

If it is decided that the deal is legal Aer Lingus can claim a significant statuary redundancy rebate from the State and employees will receive very favourable tax treatment on their lump sums, all at the expense of the taxpayer.

It is, of course, a typical Tammany Hall tactic in order to ‘get around’ the law.

The Dept don’t want the hassle of more trouble at the airline, Aer Lingus want a deal with the workers but don’t want to pay for it and the workers want generous compensation for accepting a new deal from management.

The solution – agree a dodgy deal and make the taxpayer pay the cost.