Former Aer Lingus workers claim pension proposals discriminate against them

More than 3,600 former Aer Lingus workers claim that proposals to end the row over a €780 million hole in the pension fund it operates jointly with the Dublin Airport Authority discriminate against them and could cut their retirement benefits by up to 60 per cent.

The airline has backed Labour Court proposals aimed at resolving the row that involve freezing the existing scheme, contributing €110 million to a new fund to cover current staff and €30 million for deferred members, those who left Aer Lingus before retiring, but are due a pension at 65.

Deferred members, many of whom worked for the airline for most of their carers, say that the existing proposals discriminate against them.

They have told the Pensions Board and Government Ministers, Joan Burton and Leo Varadkar, that by placing the €140 million contribution into a new fund rather than into the existing scheme, the company was able to treat them differently to current employees.

Their figures show that an employee who left in 2009 and was due a pension of €37,590 from 2017, will get just €16,004 under the proposals as they stand, a loss of 57 per cent.

According to Jean Cashman, trustee and deferred member, they are ignored because they have no trade union representing them at the negotiating table.

Aer Lingus pointed out that it believes the Labour Court proposals, issued last May, form the basis a deal that would serve all parties’ interests.