Lack of aid for pension schemes ‘disgraceful’
Joe O’Flynn, SIPTU general secretary said it was “nothing short of disgraceful” that ordinary workers contributing to their pension entitlements are left facing the prospect of significantly reduced pensions as they come to retire while the financial sector is protected to the tune of €400 billion.
“We have the scandalous situation where workers paying to provide for a reasonable standard of living in their senior years following retirement are witnessing the near collapse of their pension schemes with the massive reduction in equity, property and other returns,” said Mr O’Flynn speaking at the union’s south-west regional conference last night.
“This is bad enough for those with defined benefit pensions. Worse still is the case of those with defined contributions schemes, where all of the risk is on the employees. Of course, we haven’t seen any Government moves to assist these workers or to aid these schemes, which are in great difficulty.”
He said the chief executive of Bank of Ireland commanded a salary and bonus of almost €4m last year, while the chief of AIB receives almost €2.5m.
“Yet these are the same people whose financial institutions are being bailed out by our own Government at the same time as many ordinary people are left struggling to repay their mortgages. In addition, many thousands of workers are losing their livelihoods because of global companies chasing higher profits to boost their own bonuses and pay packets.”
Mr O’Flynn also referred to the recently negotiated new national pay deal which features a 6% pay increase for workers over a 21 month period. The union members must vote to accept or reject that deal later this month.
He said he could not represent the proposals as a great deal because there was a strong possibility that it may not fully protect living standards against inflation over the 21 months proposed.
“However, I am satisfied that the terms are the best available and certain that not a cent was left behind at the negotiating table,” he said.
He also said some union members might feel that they could do somewhat better in a “free for all” with individual deals being sought in each company.
“I believe that the majority of our members would certainly not do any better, with those in weaker employments getting little or no increase in the present climate,” he said.
Today union members will discuss a range of issues, including the restructuring of the union, the underfunding of the health service and the work of the International Transport Federation which works to protect seafarers entering Irish waters.
