Aer Lingus row goes to Labour Court

The Labour Court has been asked to consider a number of issues of contention between Aer Lingus and its staff unions as they try to reach a deal on how to address the €770m deficit in the aviation pension scheme.

One of the most divisive issues remains the productivity measures — referred to as “cost stabilisation by management — being sought by the company in return for making a contribution which would address the deficit.

Yesterday the company’s director of change and engagement Sean Murphy wrote to the Irish Congress of Trade Unions, which represents the staff unions, to reiterate that management was not willing to start paying staff increments again. Under the company’s “greenfield” cost savings drive, Aer Lingus had not paid increments to staff since 2010, but had been due to start making the payments again this April.