Unions signal concern at Aer Lingus’ bid for new savings in return for pension funding

Trade unions have told Aer Lingus they would have serious problems with any demands for staff to provide compensatory savings in return for investment to deal with a deficit in their pension scheme.

A Government-appointed expert panel recommended this week Aer Lingus should increase its proposed capital injection into new pension arrangements for serving personnel from €110million to €146.7million.

It also urged that an unspecificed further amount, on top of €30 million already promised, should be allocated by the airline for pension arrangements for for former personel who have lef the company but not yet retired.

The report said Aer Lingus had said the provision of any additional capital “must be accompanied by a further exchange of value from employees”.

In a letter today to Aer Lingus, the Irish Congress of Trade Unions said the reference in the report to a desire on the part of the airline for a further exchange of value from employees was "extremely problematical".

It said: "In the first instance such a requirement is inappropriate as what is envisaged in the expert panel report is a once-off payment for employees and secondly, in our deliberations with the expert panel there was no indication that Aer Lingus would be seeking any additional contribution from employees other than the contribution recommended by the Labour Court. "

Congress has sought an early meeting with the company.

Aer Lingus told the markets on Monday it noted the recommendations for the additional capital injections proposed in the expert panel report in relation to future pension arrangements. The airline said it would review the findings of the expert panel and issue a further announcement in due course.