Shannon Aerospace staff reject Labour Court recommendation over pension scheme

Workers at aviation maintenance company Shannon Aerospace have overwhelmingly rejected a Labour Court recommendation aimed at resolving a dispute over the management’s plans to close the defined benefit pension scheme.

The company had announced to staff that it would cease making contributions to the scheme, which is solvent, from February 3rd. The Labour Court recommended that both sides maintain the status quo for two months to allow for negotiations.

Management at Shannon Aerospace had accepted the recommendation but last night 92 per cent of staff voted to reject the recommendation. The turnout was about 88 per cent. Siptu has not issued a formal comment on the ballot result. The company employs about 500 people.

Earlier this month Siptu told the Labour Court that a defined benefit scheme was a condition of workers’ employment. It also argued that the scheme’s actuary had calculated the current level of contributions should meet regulatory standards for the next five years, and that a further 2 per cent contribution would sustain it for a further 10 years. However, the firm told the Labour Court it could not sustain the costs associated with the scheme.