Union welcomes proposal to tackle airline pension row

Siptu members at Aer Lingus and the Dublin and Shannon airport authorities have welcomed an interim proposal by the Labour Court for a structured negotiation process to resolve the pensions row at the companies.

Since the autumn, Siptu has been threatening strike action at airports because of a perceived lack of progress in talks aimed at resolving the €750m deficit in the pension scheme.

The Labour Court’s interim proposal will now be handed to a technical group, made up of actuarial and legal advisers, who will then formulate more detailed proposals based on the Labour Court’s suggestions.

Once this proposal is backed by the Labour Court, it will then be presented to Aer Lingus shareholders and the unions for acceptance or refusal.

Speaking on behalf of the Aer Lingus pensions committee, Siptu organiser Dermot O’Loughlin said the Labour Court’s interim recommendations provides “for a structured foundation” with “a robust timeframe”.

“It is the unanimous view of the Aer Lingus, DAA and SAA committees that staff representatives should attend any deliberations that occur within the ‘technical group’ that is referred to in the recommendation. This will facilitate efficiency, transparency and accountability.”

He said that there remained a lack of clarity on the benefits that can be derived from the current pension contributions and that members were “opposed to any attempt by the airline to seek ‘cost offsetting measures’ in return for meeting its responsibility to properly fund the pensions scheme”.

Aer Lingus has refused to comment on this initial proposal saying both sides “are only half way through the process”.

It’s expected it will take another one to two months before the process reaches the point where a definite proposal can be put to shareholders and union members.

Last month, the head of the Labour Relations Commission Kieran Mulvey warned Aer Lingus and its unions that the “trenchant and diametrically opposed” views they have on staff efficiencies leave little opportunity for his organisation to find a resolution.

The airline has sought up to €54m in “cost stabilisation measures” in exchange for pumping up to €100m into the Irish airlines’ superannuation scheme.

Last November, some 2,500 cabin crew, ground staff and administration workers were due to walk off the job at Dublin, Cork and Shannon airports over this pensions issue but strike action was averted when Ibec and Ictu provided greater clarity on the ongoing talks structure.