Action postponed in airport pensions row
TALKS AT the Labour Relations Commission (LRC) aimed at averting industrial action at Aer Lingus and the State’s three main airports in a row over pensions were adjourned yesterday.
Sources said some progress had been made and that the talks were expected to resume on Tuesday.
On Thursday, trade union Siptu deferred planned work stoppages at Aer Lingus and the Dublin Airport Authority, which runs the airports at Dublin, Cork and Shannon. The stoppages were due to commence on Monday.
The move followed the circulation of proposals by LRC chief executive Kieran Mulvey aimed at resolving the dispute.
The issue involves the Irish Airlines Superannuation Scheme (IASS), operated for many years by the Dublin Airport Authority, Aer Lingus and SR Technics. It has 14,667 members. The scheme had a deficit of €748 million on May 31st, 2012, according to a document circulated on Wednesday.
It states that in the event of the IASS being wound up, the trustee had purchased guaranteed annuities to secure pensions in payment but that active and deferred members would receive only 15 per cent of the statutory entitlement.
The talks are aimed at producing a funding standard proposal for submission to the Pensions Board by March 2013.
In May, employers proposed that the IASS scheme be frozen. They wanted the trustees to adjust accrued benefits for active and deferred members while also purchasing sovereign annuities for current and future pensioners.This was recommended by the LRC, with a few amendments.