Gap narrows in pension row

THE gap between Dublin Airport Authority (DAA) and unions has been narrowed in a dispute over the funding of pensions but there is still some distance between Aer Lingus and the unions.

Employees from both the DAA and Aer Lingus pay into the Irish Aviation Superannuation Scheme, which is currently underfunded by close to €750 million. The matter affects both DAA and Aer Lingus staff at Shannon and if an agreement isn’t found, industrial action, which has already been threatened, could close the airport.

Matt Staunton is national secretary with Impact, which represents Aer Lingus cabin crew and members of DAA middle management. Speaking to The Clare Champion on Wednesday, he said there has been progress made in discussions with DAA management. “We’ve had discussions with the DAA, there was a long discussion on Monday that went quite well, we’re going back for further discussions later in the week and we hope to get to the stage where we might be made an offer.”

While reports in the national media on Wednesday indicated a DAA proposal would offer employees 78% of their final salary on retirement, Mr Staunton there was “a bit more to run”. For it’s part, the DAA refused to comment on the reports.

Negotiations between unions and Aer Lingus at the LRC last week were unsuccessful and SIPTU organiser Dermot O’Loughlin hit out at the airline afterwards. “Local representatives sought the opportunity to meet with the management side to tease out the specifics of the company’s proposal.

The company refused to meet and only provided a three-quarter-page note entitled Proposal Summary bereft of detail.

“It is the view of the pension committee that Aer Lingus has chosen to deliberately abandon all meaningful and reasonable negations to resolve the pension crisis. Our members are angry and disillusioned at the discourteous behaviour of the Aer Lingus management team.”

It is understood Aer Lingus is less enthusiastic about matching terms it has been reported the DAA will offer.

However, in a statement on Wednesday, the airline rejected criticism of its behaviour. “Aer Lingus is concerned at today’s media reports regarding pension arrangements. Our focus remains on finding a long-term solution to the IASS funding difficulties that balances the provision of fair and sustainable pensions into the future with the interest of our shareholders. The matter is still the subject of a resolution process under the auspices of the Labour Relations Commission. We remain committed to this process and are engaged with the advisors of the unions in this regard.”