Airport unions warn of action

Unions at Aer Lingus, Dublin Airport Authority, and Shannon Airport Authority will spend the next fortnight discussing a campaign of co-ordinated industrial action over their members’ pensions.

It could mean major disruption to flights into and out of the country within weeks.

The decision comes after the unions met yesterday to discuss proposals on how to plug the €800m deficit in the Irish Airlines Superannuation Scheme.

The proposals include the use of new legislation which allows cuts in payments to current pensioners for the first time. They also mean current workers — as well as former workers who have not yet retired — would see a 20% cut in pensions benefit.

However, as cabin crew union Impact has pointed out to its members, the benefit cut “would be significantly offset by the removal of earlier proposals to increase the retirement age and compulsorily convert 25% of pension into a lump sum at a very disadvantageous rate”.

Aer Lingus and the DAA both said they will put cash into a new defined benefit scheme for future service, with workers contributing to a resolution through reduced pension benefits. However, unions say the proposed employer contribution is not enough.

The trustees want to introduce the proposed changes to the pension scheme by the end of this year. This would be subject to Pensions Board approval.

While ground crew union Siptu has already balloted members for industrial action up to strike and could be ready to begin such action before St Patrick’s Day, Impact has held off balloting until now.

However, it has told its members working in the three companies to expect a ballot on “serious industrial action” in the near future if there is no resolution to the crisis due to the employers’ failure to reach agreement on how to address the deficit.

Siptu, meanwhile, has been invited to formal discussions on the outstanding issues “as a matter of urgency” by the DAA, which proposed the sides meet on Wednesday.