Yes the question is are EI going to destroy itself from within.
While the whole country has pulled together and made sacrifices to prevent foor and mouth permeating the country what do Are Lingus employees do but shout me me I want when the company is in serious crisis. Three factors are effecting the companies future profitability, firstly the downturn in the US economy (bookings for summer flights are down 20pc), secondly the foot & mouth containment & thirdly every one-day stoppage costs the airline £3m.
The company has agreed already to pay wage increases totalling £20m & when pension costs & other settlements are added on it is likely to have a wage bill which is £30 higher than last year.
How much money does it have to spend. In 1999 it made operatring profits of £58m & for last year profits of approx £60m. If all the pay demands were met it would cost about £50m to £60m. The company set profit targets for this year based on an increased bill of £30m & still hoped to make a profit of over £58m but that is all pipe dreams now along with its plans for a stock market flotation.
If the current situation continues the company is on track to make no profit this year & possibly lose money!
The company in the meantime is attempting to finalise deals with five different groups within the company representing 5,000 employees. The largest group consists of 1,500 clerical workers & a similar number of operatives, with also 1,600 cabin crew, 500 pilots & 150 mid management personnel all looking for their piece of the cake.
The people who will suffer in the long run from Aer Lingus's emploees behaviour are the employees themselves. The brand name which has taken yeasrs to build up is being badly damaged by these strikes.
I appreciate & sympathise with many of EI's staff & feel many of their grievances have been justified but is now the time to air them. The strikes are financially crippling the company. Maybe they would be better to wait to settle their grievances at a more appropriate time then let a culture of me feinery drag the companies profitability down to such a dangerous state & possibly jeopardise their own jobs and the company itself.
Is it worth that? I don't think so.