Varadkar calls on airline parties to accept last chance

Minister for Transport Leo Varadkar yesterday called on all parties to accept what he called the "best and last" opportunity to resolve a €750 million pensions row that has several times threatened to halt air travel in or out of the Republic.

Aer Lingus and the Dublin Airport Authority (DAA) have been locked in a dispute with unions for several years over the insolvent Irish Airlines' Superannuation Scheme, which has an estimated deficit of €750 million.

The dispute almost closed the Republic’s main airports on St Patrick’s weekend. That incident was the latest in a number of strike threats that resulted from the row.

A resolution moved closer yesterday after the airline's chief executive, Christoph Muller, "reluctantly" agreed to increase its contribution to a settlement by €44 million to €190 million, in line with the recommendations of a Government-appointed expert panel set up to end the deadlock.

The DAA, responsible for Dublin and Cork airports, said it would review the panel's recommendations, which could result in it paying out almost €73 million, but the State company added that it believed the recommendations represent "the basis for a final and complete resolution of pension arrangements".

Mr Varadkar welcomed both statements. “I now urge all other parties involved to also accept the panel’s recommendations.”

However, Siptu pensions officer Dermot O'Loughlin confirmed yesterday that airport police and fire service staff at Dublin, Cork and Shannon still have the power to veto any deal done on the basis of the panel's recommendations, either by rejecting it or refusing to ballot in the first place.

The 300 staff involved, members of Siptu, have indicated to the union that they will not vote on some thing that they have already rejected.

A sticking point for the emergency personnel is a proposal under which some of them retire at 60 but do not receive a pension until they are 65.

The expert panel was established following the near closure of the State’s airports in the run up to St Patrick’s Day. It published its final recommendations two weeks ago. They are based on a plan to freeze the existing scheme and move its 4,270 active members to a new scheme.