Labour Court Database __________________________________________________________________________________ File Number: CD90283 Case Number: LCR12914 Section / Act: S67 Parties: AER LINGUS - and - AER LINGUS CRAFT UNIONS GROUP |
Claim by the Unions on behalf of approximately 850 craftsmen concerning employee shareholding in a subsidiary company (TEAM - Aer Lingus).
Recommendation:
3. The Court has considered the submissions of the parties to
this claim and notes that while there are fundamental differences
of view on the terms that should apply to a staff share-holding,
such a holding is not rejected by the Company on grounds of
principle. The Company has also stated that irrespective of other
considerations it will retain control (more than 51%) of its new
subsidiary company, TEAM Aer Lingus.
There are however various practical obstacles to dealing with the
matter in the short-term such as the capital structure
arrangements that have yet to be put in place, the fact that the
business is only in its embryonic stage and not least the complex
relationship in matters of share-holdings between the company and
the shareholder (Government). The Court notes that that
shareholder has not yet published a policy decision on staff
shares in state or semi-state companies.
The Court therefore recommends that discussions on the possibility
and terms of a staff share-holding should be deferred until the
Company is in full production, that is, when its projected new
employment of 560 has been achieved and the business volume has
been determined. If in the mean-time a decision is made to give
any third party participation in the company or if the shareholder
makes a policy decision accepting the principle of staff
share-holding in state or semi-state companies, then the
discussions on the possibility and terms for a staff share-holding
should be brought forward.
Division: CHAIRMAN Mr McHenry Mr Walsh
Text of Document__________________________________________________________________
CD90283 RECOMMENDATION NO. LCR12914
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
SECTION 67
PARTIES: AER LINGUS
and
AER LINGUS CRAFT UNIONS GROUP
SUBJECT:
1. Claim by the Unions on behalf of approximately 850 craftsmen
concerning employee shareholding in a subsidiary company (TEAM -
Aer Lingus).
BACKGROUND:
2. Further to the Court's investigation of the above matter on
11th June, 1990, the following is the Court's recommendation.
RECOMMENDATION:
3. The Court has considered the submissions of the parties to
this claim and notes that while there are fundamental differences
of view on the terms that should apply to a staff share-holding,
such a holding is not rejected by the Company on grounds of
principle. The Company has also stated that irrespective of other
considerations it will retain control (more than 51%) of its new
subsidiary company, TEAM Aer Lingus.
There are however various practical obstacles to dealing with the
matter in the short-term such as the capital structure
arrangements that have yet to be put in place, the fact that the
business is only in its embryonic stage and not least the complex
relationship in matters of share-holdings between the company and
the shareholder (Government). The Court notes that that
shareholder has not yet published a policy decision on staff
shares in state or semi-state companies.
The Court therefore recommends that discussions on the possibility
and terms of a staff share-holding should be deferred until the
Company is in full production, that is, when its projected new
employment of 560 has been achieved and the business volume has
been determined. If in the mean-time a decision is made to give
any third party participation in the company or if the shareholder
makes a policy decision accepting the principle of staff
share-holding in state or semi-state companies, then the
discussions on the possibility and terms for a staff share-holding
should be brought forward.
~
Signed on behalf of Labour Court
Kevin Heffernan
13th June, 1990 ---------------
B O'N/U.S. Chairman