Aer Lingus pay dispute: How worried should customers be?

For those lucky enough to have a foreign holiday planned in the coming weeks, the wind, rain and low temperatures of recent days have no doubt added to the sense of excitement and anticipation of jetting off for some summer sun.

For people flying with Aer Lingus however, there has probably been an added sense of nervousness amid the threat of a strike by pilots at the airline.

On Wednesday, the Irish Airline Pilots’ Association (IALPA) announced that its members had voted overwhelmingly in favour of industrial action, up to and including strike action, as part of an ongoing pay dispute.

As the ballot result was announced, talks were continuing between management and pilots in a bid to resolve the row.

Meetings continued on Thursday for several hours but ended without agreement that night.

It looked at that point that IALPA would announce details of its planned industrial action but there was another twist to come.

Yesterday morning, in an update to members, the union said it would be conducting another ballot, this time a paper, in-person vote as opposed to the previous electronic poll.

Aer Lingus had queried the validity of the original electronic ballot.

IALPA said there was no question around the integrity of the vote but rather than spending weeks fighting about it in court, it would instead conduct a paper ballot.

Pilots are voting this weekend in polling stations in Dublin and Cork. The ballot will close tomorrow with results due to be announced later that day.

The IALPA executive is once again recommending that members vote in favour of industrial action.

Aer Lingus has expressed concerns about the speed at which this new in-person ballot is being carried out so it may also question the validity of this vote when the results are announced.

When will we know if or when there will be a strike?

When union leaders announce the result of the ballot tomorrow, they may give an update on possible strike plans.

If the pilots are to take to the picket lines, it may be later in the week before a date is announced.

IALPA is legally required to give Aer Lingus a minimum of seven days’ notice of any strike action.

The airline has asked that it be given at least 15 days notice to allow more time for alternative arrangements to be put in place for passengers.

IALPA has claimed that 15 days would allow Aer Lingus to avoid paying compensation to passengers but the airline insisted that it is seeking the additional time in order to minimise the impact on customers, adding that it has no difficulty refunding, re-accommodating and compensating passengers where that is required.

Aer Lingus has said that industrial action would have a severe and devastating impact on the travel plans of customers.

It is likely that the airline would try to hire external aircraft and crews to cover some routes but availability would be limited at this busy time of year.

In aviation disputes, the announcement of a strike date can be as damaging as the strike itself.

As soon as the date is revealed, passengers cancel their flights and book with alternative providers. The airline involved has to begin the costly process of putting contingency plans in place.

If the strike is ultimately called off, as happens in many cases, much of the damage has already been done.

If my flight is cancelled due to a strike, what are my rights?

Under EU regulations, consumers have certain rights when flights are delayed or cancelled due to strike action.

These rights may include compensation for delay or cancellation, as well as care and assistance while passengers wait.

“Strikes by baggage handlers or other groups external to the airline may be considered extraordinary circumstances, but strikes by airline staff, referred to as internal strikes, are not considered extraordinary circumstances and so any compensation due under EU regulations must be paid,” according to a spokesperson for the Competition and Consumer Protection Commission.

“Consumers who have trouble accessing compensation can lodge a complaint through the Irish Aviation Authority (IAA), which is responsible for enforcing these rights in Ireland,” the spokesperson added.

When it comes to travel insurance, holidaymakers are being advised that some policies do not cover strikes.

“Those about to head off on holiday soon should therefore check directly with their travel insurer to see what level of cover (if any) they have in the event that they have to abandon their holiday on foot of any unfolding strike,” said Paul Walsh spokesperson for People Insurance.

“In the event your current policy has inadequate strike cover, or none at all, you are unlikely to be able to boost your strike cover by buying an add-on at this stage.

“Most travel insurance policies have a prior knowledge rule which means you will usually not be covered for any claim which arises as a result of a risk which you already knew existed prior to the date of booking your trip and/or travel insurance,” Mr Walsh said.

“However, if you are departing from the EU, under EU law, you’ll usually be offered the choice of a refund or reroute if an airline cancels your flight.”

“Note though that this only applies to your flight and you will likely struggle to get a refund for other elements of your trip, including accommodation and car hire,” he added.

What is this row about?

Back in December last year, an independent pay tribunal at Aer Lingus recommended a set of proposals that included a 12.25% pay increase.

For pilots, it would have meant an effective increase of 8.5%.

Members of IALPA voted to reject that deal however saying it did not reflect the impact of inflation, the big profits being earned by Aer Lingus and the sacrifices made by pilots to sustain the airline during the Covid pandemic.

IALPA said its members at Aer Lingus have not had a pay rise since 2019 and is seeking increases of almost 24%.

The matter went before the Workplace Relations Commission in February but management and pilots were unable to reach an agreement and so it went before the Labour Court for a hearing in April.

The Labour Court issued interim recommendations which included pay increases for pilots totalling 9.25% but this was rejected by IALPA.

The union has defended its 24% pay demand claiming that other airlines have awarded similar levels of increase in recent years.

Aer Lingus has described the pilots’ pay demands and exorbitant, outrageous and untenable. It has rejected claims that pilots have not seen their pay increase since 2019, pointing out that increments have continued to be paid allowing pilots to continue to rise up the pay scale.

The company said that other staff groups in Aer Lingus accepted the proposals put forward by its independent pay tribunal and that Aer Lingus pilots are on higher pay compared to many competing airlines.

The dispute has seen Aer Lingus lose out on the allocation of two new Airbus aircraft with its parent company IAG allocating the planes elsewhere within the group due to the uncertainty caused by the row.

How much are Aer Lingus pilots paid?

The Aer Lingus pilots’ pay scale is long and complicated with allowances and increments reflecting years of service and the types of routes being flown.

At the entry-level, a co-pilot starting out is paid a basic salary of around €59,000 a year.

A captain at the top of the scale earns a total package of around €287,000.

There are different pay structures for co-pilots and captains, as well as different scales depending on whether a pilot flies long-haul or short-haul routes.

When it comes to the latter, Aer Lingus pilots are well-paid compared to their short-haul colleagues in competitor airlines such as Ryanair.

Of the almost 800 pilots at Aer Lingus, around a quarter of them are pilots on the top pay grade.

At the other end of the scale, IALPA has accused management of failing to reverse Covid-era cuts to lower pay grades for new entrants resulting in new pilots earning up to 10% less than colleagues who were employed prior to the pandemic.

All industrial disputes get resolved in the end and this one will too.

In the meantime, however, the uncertainty goes on for passengers who are planning to fly with Aer Lingus this summer.

It could be some time yet before a solution is found to a row that is as long and complicated as the pay structures at the heart of the dispute.