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UPDATE 1-Aer Lingus rebuffs union calls for mediation

Published 01/19/2011, 10:10 AM

* Dispute forces cancellation of flights

* Travel agents warn of damage to reputation

* Trade union started industrial action in Oct 2010

(Recasts with Aer Lingus comments, updates shares)

DUBLIN, Jan 19 (Reuters) - Irish airline Aer Lingus rebuffed calls on Wednesday for fresh talks to resolve a long-running dispute with cabin crew that has triggered flight cancellations this week.

Impact, the labour union representing Aer Lingus employees, has sought "third-party intervention" to resolve the dispute over increased working hours after the airline cancelled more than ten flights and removed over 50 staff from the payroll for failing to work longer hours.

"We don't see any scope for further talks at this particular point in time," Micheal Grealy, chief human resources director at the airline, told state broadcaster RTE.

"Any efforts to engage in extra conciliatory activity amounts to a cynical attempt to backtrack on the 850 hours agreement."

Aer Lingus has raised the number of annual flight hours to 850 from 830 as part of cost-cutting measures to turn the airline to profit. Talks on the new rosters started in the autumn of 2009 and were introduced this week.

Over 100 of the 800 plus cabin crew represented by Impact in Ireland have declined to work to the new timetable. They have refused to do additional hours since October.

"We have asked the Labour Court to intervene because we understand that the problem needs to be resolved and because we are confident that we have a strong case to put before an independent third party," Impact said in a statement.

The Labour Court is Ireland's top industrial relations tribunal. Cases are referred to it when all other efforts to resolve a dispute have failed.

Aer Lingus has cut unprofitable routes, reduced staff and fuel costs to reverse losses threatening its survival. It returned to profit last year.

The Irish Travel Agents Association (ITAA) called on Transport Minister Noel Dempsey to ensure an industrial relations mediator would intervene in the dispute.

"At a time when our national reputation is at an all time low, business people are working harder than ever to keep our credibility as a productive and reliable economy intact," Simon Nugent, ITAA's chief executive, said in a statement.

"They need to be able to travel so as to secure and retain contracts and to show that the county is open and efficient. It is simply not acceptable that scheduled air services can be disrupted like this with little or no notice."

Ireland has been struggling with a financial crisis that has forced it to seek an 86 billion euros ($116 billion) EU/IMF bailout late last year and is counting on export-driven growth to revive its economy.

Shares in Aer Lingus were up 0.93 percent to 1.09 euros at 1508 GMT slightly outperforming the general market which was down 0.3 percent. (Reporting by Yara Bayoumy and Carmel Crimmins; Editing by Jon Loades-Carter, Mike Nesbit) ($1=.7425 euros)

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