€1.5m to Aer Lingus CEO doesn’t add up
IMPACT official Matt Staunton has written to Transport Minister Leo Varadkar outlining the union’s dismay at a pay package of €1.5m, which included an increase in the company contribution rate to Mueller’s pension, from 25% to 40% on a base salary of €450,000.
It is shocking that Mueller can trouser €1.5m, while Aer Lingus workers could face imposed co-ordination (the loss of the value of the State pension in the amount of €12,000), in addition to a cut of 20% in benefits, as well as moving from a defined benefit to a defined contribution scheme.
This is in addition to the non-payment of gain share payments to staff for increased productivity measures under the transformational Greenfield Agreement.
Minister Varadkar has responded that such remuneration measures are a matter for the board, but outlined his “concern” and is to consult with his colleagues at Cabinet.
The Government must use its shareholder vote against the remuneration resolution.
This would send a strong, and clear, message to corporate leaders in terms of their pension provision obligations to their workers. This is of particular importance, given the challenges that Ireland faces in terms of State pension provision, going forward.
Given the pensions crisis at Aer Lingus, surely such a generous pay package, with extraordinary pension provisions, must be deemed by the Government to be inappropriate at this time.
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