DAA unions to ballot workers on proposals to end pensions deadlock

Impact, Mandate, TEEU and Unite plan ballots, says airport authority

Aer Lingus has pledged to contribute €191 million to seeding the new superannuation scheme while the DAA has committed to paying €72 million. Photograph: Frank Miller

Aer Lingus has pledged to contribute €191 million to seeding the new superannuation scheme while the DAA has committed to paying €72 million. Photograph: Frank Miller

 

Dublin Airport Authority (DAA) unions plan to begin balloting workers in coming weeks on proposals to end the deadlock over the €750 million hole in the pension scheme jointly operated by the State company and Aer Lingus.

The news comes as it has also emerged that the retirement plan’s trustees intend to seek approval from the pensions’regulator for proposals that involve freezing its existing assets and clawing backbenefits from workers and retired staff already drawing an income from the scheme.

Unions and management at Aer Lingus and the airport company have been in dispute for over four years over the €750 million shortfall in the insolvent Irish Airlines’ Superannuation Scheme (IASS).

Yesterday DAA chief executive Kevin Toland circulated staff informing them the “Impact, Mandate, TEEU and Unite trade unions plan to hold member ballots” in the coming weeks and have recommended the settlement proposals.

Concerns

Siptu has yet to indicate when it will ballot its members as it has a number of concerns relating to airport police and fire fighters. However, it is understood that the union intends to meet DAA management next week to deal with this.

 

Mr Toland’s circular confirms that the company is on course to meet the union next week and said that it remains a priority to get agreement on the issues over the next month.

Aer Lingus IASS members voted last week by a 70-30 majority to accept the proposals and the publicly-quoted company plans to hold an extraordinary general meeting shortly to get shareholder backing for its side of the bargain.

New scheme

Alongside proposals to freeze and derisk the plan’s assets and the benefit cuts, workers and deferred IASS members will move to new defined contribution scheme.

Aer Lingus has pledged to contribute €191 million to seeding the new scheme while the DAA has committed to paying €72 million. Mr Toland told staff yesterday DAA intends to have the new defined contribution plan up and running on January 1st.

Meanwhile, the IASS trustees, chaired by Brian Duncan, have written to all members confirming that it plans to seek approval from the regulator, the Pensions’ Board’s, for the benefit cuts to active and deferred members and a clawback from pensioners. The Retired Aviation Staff Association, which represents pensioners facing cuts, which the organisation claims will be equivalent of six weeks income every year, said it is likely to go ahead with legal action.

 

The Irish Times Logo
Commenting on The Irish Times has changed. To comment you must now be an Irish Times subscriber.
SUBSCRIBE
GO BACK
Error Image
The account details entered are not currently associated with an Irish Times subscription. Please subscribe to sign in to comment.
Comment Sign In

Forgot password?
The Irish Times Logo
Thank you
You should receive instructions for resetting your password. When you have reset your password, you can Sign In.
The Irish Times Logo
Please choose a screen name. This name will appear beside any comments you post. Your screen name should follow the standards set out in our community standards.
Screen Name Selection

Hello

Please choose a screen name. This name will appear beside any comments you post. Your screen name should follow the standards set out in our community standards.

The Irish Times Logo
Commenting on The Irish Times has changed. To comment you must now be an Irish Times subscriber.
SUBSCRIBE
Forgot Password
Please enter your email address so we can send you a link to reset your password.

Sign In

Your Comments
We reserve the right to remove any content at any time from this Community, including without limitation if it violates the Community Standards. We ask that you report content that you in good faith believe violates the above rules by clicking the Flag link next to the offending comment or by filling out this form. New comments are only accepted for 3 days from the date of publication.