Shareholders should accept pensions deal

Aer Lingus shareholders are voting to accept proposals to safeguard pension benefits for staff following the near collapse of the IASS scheme.

Many investors may be scratching their heads wondering why they should sanction the forking out of €197m to resolve the pension dispute. However there is an overall good deal on the table for the company.

Firstly, all staff will be required to sign a waiver which in essence absolves Aer Lingus from all responsibilities in terms of the IASS scheme.

Secondly, all employees will transfer to a defined contribution scheme which also involves the transfer of risk from Aer Lingus to employees.

Thirdly, and perhaps most importantly, an internal disputes resolution mechanism is to be set up.

If I were a shareholder I would vote yes and so ensure human resource issues are sorted out in house without stressing passengers.

John P Doyle

Ardbrugh Villas

Dalkey

Co Dublin