Efforts to resolve the dispute over a €750 million hole in the pension scheme operated jointly by Aer Lingus and the Dublin Airport Authority (DAA) still face the threat of legal action.
Hopes that the long-running row could be resolved by the end of the year rose this week with the news that Aer Lingus workers voted in favour of settlement proposals by a 70/30 margin. The resolution still has a number of hurdles to clear, including getting the support of DAA workers and Aer Lingus shareholders and approval from the Pensions Board.
However, some of the scheme’s deferred members, former employees of both companies who have yet to reach retirement age, are still preparing to proceed with legal action.
Legal move
A committee representing this group signalled its intention to go to court some time ago, and hired
Hayes
Solicitors and senior counsel
Michael Cush
to represent them.
There are 5,186 deferred members in the scheme. The committee claims that the proposals designed to resolve the four-year-old dispute would leave them worse off relative to those who are still working.
Those proposals involve moving members of the Irish Airlines Superannuation Scheme (IASS) to a new plan to which Aer Lingus would contribute €191 million and the DAA €72 million.
The airport company yesterday told staff it had given a commitment to the scheme’s trustees that it would make that money available so it can be paid into the new pension plan on behalf of members involved.
Its commitment comes despite the fact that its staff have yet to be balloted on it.
Trade union Siptu wants certain issues addressed before putting the plan to a vote of its members and has signalled that the €72 million that the DAA has pledged is not enough.
The DAA said it took this step in the interests of staff as if the proposals did not go ahead, any alternative would “seriously disadvantage” them. IASS members are due transfer to enter the new scheme on January 1st
.
Siptu’s pension committee wrote to the company’s head of industrial relations, John McCormack, saying the additional €9.15 million that the DAA had pledged, bringing its contribution to €72 million, would only benefit a small number of higher-paid executives.
A DAA source said this was “completely untrue” and the proposal favoured those on lower salaries. The company agreed to increase its contribution following the intervention of an expert panel appointed to help find a solution to the row earlier this year.
