Unions and employers discuss aviation pension scheme report
by Niall Shanahan
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IMPACT welcomed last week's publication of the report of the expert group set up to make recommendations on dealing with the funding deficit in the Irish Aviation Superannuation Scheme (IASS), which is the pension fund covering most staff in Aer Lingus and the Dublin and Shannon airport authorities. The report was published despite a call by Aer Lingus for it to be delayed. Unions and employers have been discussing the report this week.
In a statement issued today (Friday) Aer Lingus accepted the recommendations of the expert group as "the only solution that is capable of acceptance by all the parties."
IMPACT plans to hold a comprehensive round of information meetings with members to explain the contents of the report. The union will also outline the consequences of a rejection of the proposals for the future viability of the pension scheme, pension benefits, and industrial relations in the sector. At a meeting earlier this week the company undertook to draft up the effects of the proposed extra cash on members' pension prospects and have set up a communications unit to do so.
The union will then ballot its members on the proposals.
In a follow-up letter sent to Aer Lingus, Congress described the reference in the report to the company's wish to see further cost saving measures delivered by employees as “extremely problematical”. The letter states “In the first instance such a requirement is inappropriate as what is envisaged in the expert panel report is a once-off payment for employees and secondly, in our deliberations with the expert panel there was no indication that Aer Lingus would be seeking any additional contribution from employees other than the contribution recommended by the Labour Court.”
In a meeting with unions this week, the company clarified that they are not looking for any more cash offset savings and are instead seeking to agree to put in place a non-binding dispute resolution process to bring some industrial relations stability to the company. Unions had earlier raised this approach with the company. Management are to table a proposal on this shortly.
A meeting was also held earlier this week with the DAA and a communications unit will be established to draft information for members on how the report recommendations will affect them.
In a statement the authors of the report said it was the “final opportunity to resolve this very protracted and divisive dispute” and that “the situation facing members of the IASS will deteriorate further” if the report is not accepted. The authors warn that the scheme trustees will move to freeze the scheme for future service and cut accrued benefits by 20% if this initiative fails.
The expert panel was established in March by ICTU, IBEC, the Department of Transport, Tourism and Sport, and the Department of Jobs, Enterprise and innovation. Among other things, it recommends an increase in the capital sums payable by both Aer Lingus (increased to €146.7million) and DAA (increased to €57.3 million) and lower contributions for lower paid active members in Aer Lingus and DAA.
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