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Aer Lingus dispute needs 'more money and benefit cuts', says panel

An expert panel set-up to resolve the Aer Lingus pension dispute says the airline will have to sp...
Newstalk
Newstalk

12.49 16 Jun 2014


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Aer Lingus dispute needs &...

Aer Lingus dispute needs 'more money and benefit cuts', says panel

Newstalk
Newstalk

12.49 16 Jun 2014


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An expert panel set-up to resolve the Aer Lingus pension dispute says the airline will have to spend more money to plug the €780 million deficit in the fund.

The panel was set-up by the government in March when the first strike threat emerged at the airline and the main Irish airports.

It says that Aer Lingus should give some €146.7 million towards the fund, while the Dublin Airport Authority (DAA) should hand over €57.3 million.

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The report also recommends that benefits for workers at Aer Lingus and the DAA are reduced.

The Panel has also recommended some alterations to the Labour Court Recommendations to reflect lower contributions by lower paid members in both companies.

It also says Aer Lingus should give a "once off employer pension contribution to take account of some elements of pay which are currently non-pensionable" and that in the DAA, "There is provision for revaluation of 1.5% following an initial five-year freeze period recommended by the Labour Court".

Aer Lingus says it will review the report and will make a further announcement in due course.

Transport Minister Leo Varadkar has read the report and appealing for both sides to consider its findings.


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