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Dublin: 9 °C Wednesday 22 May, 2013

Strike likely as talks over Aer Lingus and DAA pensions break down

Efforts to resolve the €748 million deficit in the pensions scheme ended “in disarray” last night, SIPTU says.

SIPTU staff at Aer Lingus and the Dublin Airport Authority are now likely to pursue strike action over a major pensions deficit.
SIPTU staff at Aer Lingus and the Dublin Airport Authority are now likely to pursue strike action over a major pensions deficit.
Image: Mark Stedman/Photocall Ireland

STAFF AT AER LINGUS and the Dublin Airport Authority (DAA) look likely to pursue strike action after talks between the two employers and SIPTU over a dispute in the €748 million pensions deficit.

SIPTU says the discussions at the Labour Relations Commission broke down last night, with Aer Lingus representatives reportedly refusing to meet directly with the unions representing the staff pension committees.

The union also claims Aer Lingus is refusing to attend the Labour Court in relation to the issue – leaving workers “angry and disillusioned”.

“Local representatives sought the opportunity to meet with the management side to tease out the specifics of the company’s proposal,” SIPTU organiser Dermot O’Loughlin said.

“The company refused to meet and only provided a three-quarter page note entitled ‘Proposal Summary’ which was bereft of detail,” he accused.

SIPTU had previously pledged strike action over the issue, and had only called off planned action for earlier this month after accepting a last-minute plea from the Labour Relations Commission to enter talks.

The dispute centres on the funding of the Irish Aviation Pensions Scheme – to which both the DAA and Aer Lingus contribute – which has an deficit of €748 million.

The DAA had threatened High Court action to stop the previously proposed strike action.

Aer Lingus has previously warned that employees could receive as little as 4 per cent of their expected pension benefits if they did not accept a deal, given the size of the deficit in the pensions scheme.

Read: Row rumbles on as Siptu rejects DAA/Aer Lingus offer

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Comments (45 Comments)

  • Ah well, at least Ray Foley is leaving Today FM.

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  • Whats new?

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    • I think we should support these workers it’s part of the problems with Ireland today cursing workers for taking a stance , these people have paid into this fund ,is it right they are told to fcuk off by management when they retire? One thing for sure the management will have their pay day let’s try and support these workers enough is enough .

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    • I think we should support these workers it’s part of the problems with Ireland today cursing workers for taking a stance , these people have paid into this fund ,is it right they are told to f;;k off by management when they retire? One thing for sure the management will have their pay day let’s try and support these workers enough is enough .

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  • And people are worried that Michael O Leary will destroy Aer Lingus……

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  • This is a typical union tactic, they make a statement saying that strike action is likely but refuse to give any other details, this alone causes problems for the airline and its passengers not that SIPTU officials care about passengers. Aer Lingus can’t advise passengers because they aren’t informed until the last minute by a union that can only be described as reckless.

    I don’t believe SIPTU really want to strike, I have doubts they’d actually be able to afford any long term action but the threat is enough.

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  • They are a very protected group of people like all vested groups in Irish society , this will play out as follows: strike action called , state bailout . Life goes on . At the same time ,those with no lobby group or strike power have no job ,future never mind a pension ,sit at home in despair. I understand the workers frustration in a bad investment I.e. their pension ,but look around every investment taken in recent history is a disaster.

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    • ….”every investment taken in recent history is a disaster.”….
      Unless you own an unsecured bond ? They are getting their payouts !

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    • Eileen different issue ,different debate. Can’t blame everything on the criminal public takeover of private bank debt , the solution is not to continue doing it , banks ,insurance companies ,etc. how much is the state expected to carry?

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    • Eileen, so the state should continue to pick up the tab for everything , I love a pizza delivery ,I wonder if mr Kenny will send it over ,as I bet on Ireland tonight and think its going bad .

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    • No it is not a different issue or debate . It is all connected . I would like to know where the money that these hard working people paid into the fund is gone ? .The Government bailed out crooked banks and politicians and developers ? Why can they not look after decent honest to god hard working people .
      You bet on Ireland tonight ?
      Just like the unsecured bond holders did in the past and …..
      Tell me what is the difference between your bet and their bet ? Both unsecured . I would love to see you roll up to Paddy Power or Boyle sport or wherever and ask for your money back ! :)

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    • “It’s all connected ” it’s not. Like my handshake bet , I lost I pay.

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    • These people did not BET …. They PAID into a pension fund .
      Where is that money ?

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    • Ya heard the Quinn family say similar last night , Anglo was an investment not a BET .

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  • When will the madness start?

    I’m in Rome and really want to get home to my kids.

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    • boats and trains !

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    • I too would like to know more details, will it be a rolling strike, ie 10% work force down tools for the first 45 mins and rest follow suit over the day, or will it be an all out strike for certain time period and then back to work.

      Reason I would like to know is should I change travel due to cancellations or factor in a time delay. Any info would be helpful.

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  • What are the employees hoping to achieve? All pension funds have taken a hit. Are they expecting the company to top them up?

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  • Ahhhhhhh

    There we have it!
    The Great Misunderstanding or the Great Lie
    Management must pay you what they owe you!
    Your Pension Fund was managed by Trustees who were your fellow employees and not the Management of Aer Lingus. Your employer owes you NOTHING. That is both the legal and the moral position and striking to exact monies that are not owed to you is foolish and immoral and probably illegal. Ask your Union to provide legal advice to show I’m wrong and I’ll pay your Pension shortfall.

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    • pagan 13/10/12 #

      I think you will find that if your employer forced you into a pension fund that was part of your contract that yes they are legally bound to put in there share as well as the employees.Watch this space. This will end up in court.

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  • SIPTU are trying to carry out a raid on the surplus cash in Aer Lingus that is earmarked for the purchase of planes to ensure the survival and continuity of the Organisation rather than making up for investment shortfalls in the Pension Fund.
    They will threaten the very survival of this once proud flag carrier to effect their disgustingly dishonest behaviour. However the ultimate victims of this immorality will be existing long term Employees who would see their long term contributions to the Pension Fund become worthless if the Airline collapses.
    Due to current law the pensioners become preferred creditors in such circumstances and all other employees and former employees not yet at pensionable age become secondary creditors.
    Experts say that the secondary creditors will get virtually nothing if the Fund is closed for whatever reason.
    SIPTU should tread very carefully or they will be responsible for the ultimate destruction of a once great Company and the final betrayer of those who one day in the future should have a decent pension.

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    • pagan 12/10/12 #

      @paddy I have to point out a few things to you. First of all this pension short fall has been going on for years. It has nothing to do with bad investments,Celtic tiger years ect.Both the DAA and Are Lingus as part of your employment contract made you join the pension scheme.Up to a number of years ago both companies stoped NEW employees joining the pension. So in effect the present employees have nobody coming in behind them to pay there pension,and they can’t pull out of this pension and throwing money into a black hole.
      Are you saying that these people don’t stand up for there rights. A lot of people don’t understand how complex this whole area is.
      You can bet your life that the CX of both companies have there pension sorted out

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  • eoghan 12/10/12 #

    They should be arrested if go on strike the country is f. K. D and these shower might be going on strike great to see every one chipping in to get the country Up and running again and the unions trying fu. K it up.il never join a union as they go too far always and they try run aer lingus.

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    • @eoghan, arent you the lucky man that you havent contributed to a pension fund for 30+ years and are looking at having it wiped out and your boss telling you to f off.

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    • I’ve contributed to mine all my working life and it’s worth feck all, this is life

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    • Ah eoghan
      You want to arrest people for standing up for their rights ?
      You are a funny man!
      My goodness what would you have them charged with ? Or
      would you just make it up as you go along ?

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    • eoghan 12/10/12 #

      Eileen it’s more to do with been realistic you had aer lingus and daa been run by the unions since they started aer lingus is now a private company if private company pays out 200r300 million for pensions it won’t last too long remember a few years aer lingus almost closed it cut everything and relyed on its cash reserves to survive if deplete them they close.so because they strike the rest of the country should suffer because pensions most people would be happy to have jobs never mind pensions a weeks wage they be happy with

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    • Faceless Man says this is life, is it life to lie down while the big company prepares to squash you and refuses to talk to you. Great life for the big business suit alright.

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    • eoghan
      Have you ever heard of the word ….Loyalty ? or Solidarity ? or Unity? or Fairness? or Identity ? Have anice evening . I want to watch Ireland kick Germany’s arse

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    • eoghan 12/10/12 #

      Well they have being paying the unions for the 30+ years and what good has that been

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  • blandina 12/10/12 #

    Wish Ryanair would be allowed to buy them and let Ryan O’Leary deal with them !

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  • Not really ITS Student because then some other airline will come in and offer cheaper fares and take that market.

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    • Which airline do you think can afford to do this? Ryanair has the lowest cost base in Europe, it has the lowest fares and has shown that it can sustain losses in order to drive off competition, just look at how it competed with easyJet when they started Cork and Shannon flights or Aer Arann on UK regional routes. The fact is very few airlines can compete long term with Ryanair, ironically only Aer Lingus has a proven record of direct competition with Ryanair and that’s only because of their strong brand recognition in Ireland.

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  • Agreed
    They did put in their proportion and the total investment declined…..tough…. End of story!

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  • Pagan
    You don’t have to point out anything to me. My comments are completely accurate and any strike action in the current economic climate will destroy the little that is left of Aer Lingus. In those circumstances you will get nothing from your Pension Fund and the overall loss to Ireland will be immense. Your stupid victory will be pyrrhic.
    Don’t be playing the victim here. Many of the Companies that have experienced devaluations of their pension funds over the past five years were compulsory for all employees .
    Work with the offer that Management are making or opt for self immolation…….your choice!

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    • pagan 12/10/12 #

      Why should anybody be forced into a pension fund that they CANT get out off as its part of there contract. I’m sorry, but if standing up for your rights is a crime this country is truely messed up. To be quite honest you haven’t a clue what your talking about.

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    • MrKnow 12/10/12 #

      its only a matter of time before standing up for your rights and working conditions will be made illegal with the possibility of imprisonment or fines. The government would have you working 60+ a week on ?2.50 if they could, all the rest going on tax.

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    • pagan 12/10/12 #

      The choice been forced onto me is strike action.If Are Lingus can’t and wont engage with the unions and the LRC and point black wont pay whats owed then what choice is there?
      Tell me if this was your pension fund and your employer stopped paying ,what would you do?

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  • MrKnow 12/10/12 #

    Its a bit off the point, but look at the daa! the top brass are some of the highest paid in the world, and our airport is a joke! no hardlink transport from it, shit roads leading out of it, a taxi rank that’s like something from the mafia.

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