LONDON – The threat of industrial action at Aer Lingus Group Plc, Ireland’s second-largest airline, has been lifted after management and the main union struck a deal on cost cuts and work practices.
Aer Lingus workers had threatened to go on strike if the company pushed ahead with a 20 million-euro ($30 million) cost-reduction plan involving changes to working conditions including break time, night duties and overtime.
But the Services, Industrial, Professional and Technical Union (SIPTU), which represents about 1,800 Aer Lingus employees including ground workers and some cabin crew members, reached an agreement with management late Sunday.
Aer Lingus on Monday confirmed it will operate as usual. Aer Lingus shares rose 0.9% in London morning trading.
The Irish carrier is not the only airline to have suffered a turbulent relationship with its employees recently.
Pilots at British Airways, Europe’s third-largest airline, last week threatened to take industrial action over the carrier’s plan to impose different working conditions at a transatlantic subsidiary it plans to launch later this year.
After overwhelmingly voting to authorize a strike, the pilots agreed to enter mediation to resolve the dispute Thursday.
The pilots hadn’t set a date for the strike, but it could have taken place over Easter weekend, one of the busiest travel periods of the year, and also threatened to perturb the airline’s move to Terminal 5, its new home at London’s Heathrow airport, at the end of March.
British Airways shares were last up 3.9% in London morning trading.