Strike threat could mean chaos at airports

IRELAND’S MAIN airports could face transport chaos next month after unions threatened industrial action unless progress is made…

IRELAND’S MAIN airports could face transport chaos next month after unions threatened industrial action unless progress is made on resolving pensions issues for Aer Lingus and Dublin Airport Authority (DAA) staff.

In a letter sent to the Labour Relations Commission (LRC) on Wednesday, the industrial officer of the Irish Congress of Trade Unions, Fergus Whelan, said industrial action would be taken unless “serious progress” was made by September 20th.

Siptu, the largest union involved in the talks, is understood to have told congress yesterday it would begin industrial action on that date.

It is not clear what form of action might be pursued by the unions but it could potentially disrupt operations at Dublin, Cork and Shannon airports, and at Aer Lingus.

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The LRC is expected to re-engage with the various parties within the next two to three weeks, beginning with the employers.

Potential proposals have already been tabled and it will be hoped a solution can be found to avoid any action by workers.

The dispute revolves around the Irish Airlines Superannuation Scheme, a pension pot operated jointly by Aer Lingus, the Dublin Airport Authority and SR Technics, which has left Ireland.

The scheme, which has in the region of 14,700 members, was in deficit to the tune of €700 million at the end of 2011 and talks have been taking place at the LRC since January in a bid to resolve the matter.

In a statement issued to The Irish Times last night, Aer Lingus said it remains “committed to working with all the relevant parties to find an appropriate solution” to the pension scheme’s funding shortfall.

“We do not anticipate any disruption to services at this time,” the airline added.

No comment was available from the DAA.

Members of the various unions recently balloted in favour of industrial action over the pensions issue. This was thought to be a negotiating tactic with the employers.

Mr Whelan’s letter said the unions were “anxious” to re-engage with the LRC and employers with regard to the pensions. He added, however, that there was “great frustration and anger” among union members at the “failure of the companies to seriously engage” with regards to the definition of past accrued service.

The High Court last month refused to sanction a €500 million reduction in Aer Lingus’s capital reserves to potentially pay dividends to shareholders unless it made provision for legal claims that might arise from deficits in its pension schemes.

Ciarán Hancock

Ciarán Hancock

Ciarán Hancock is Business Editor of The Irish Times