This article is from page 9 of the 2006-09-05 edition of The Clare People. OCR mistakes are to be expected so download the original SWF or the rendered page 9 JPG
OVER 400 Shannon-based staff of Aer Lingus could reap the rewards from share packages when the company is put up for flotation at the end of the month.
418 of the company’s Shannon-based permanent staff are members of the Employee Share Ownership Trust (ESOT).
Employees currently own 14.9 per cent of the company under the terms of the ESOT deal struck between Aer Lingus and the unions, a profit-sharing scheme could be used to purchase shares on behalf of staff. Staff will, though, have to use some of their own funds to buy shares in order to prevent any erosion of their shareholding.
Some analysts have predicted that the 3,475 Aer Lingus employees in the Share Ownership Trust could pocket shares worth an estimated €43,000 each.
SIPTU, who strictly oppose the sale, have warned that the sale is not being done for the right reasons.
Tony Carroll, SIPTU representative for Shannon, said employees made major sacrifices in return for the shares. He also repeated concerns that employees could lose out in the long run and stated employees would have to pay out of their own pocket to safeguard their own shareholding.
“There is speculation about figures but that will only happen if the company goes on the stock market, and we remain very much opposed to that. If staff want to preserve their shareholding, they are going to have to pay for it themselves. They gave up a lot when they entered into the deal; they accepted redundancies and gave up on wage increases. They didn’t get it for nothing.”
Strong reservations have been expressed about the flotation due to the perilous state of the aviation industry, with the Government coming in for criticism from members of the opposition.
The government say the move will give Aer Lingus a stronger financial position in the marketplace.