IMPACT and other unions with members in Aer Lingus and the Dublin and Shannon airport authorities are meeting today (Friday) to discuss their next steps in the dispute over the Irish Aviation Superannuation Scheme (IASS), which covers staff in the three companies.

The meeting comes on foot of new proposals from IASS trustees to plug the scheme’s €800 million funding deficit. The proposals include using new legislation that allows cuts in payments to current pensioners for the first time.

The proposals for current workers – and former workers who have not yet retired – would see a 20% cut in pension benefits, although this would be significantly offset by the removal of earlier proposals to increase the retirement age and compulsory convert 25% of pension into lump sum at a very disadvantageous rate.

IMPACT has told its members working in the three companies to expect a ballot on “serious industrial action” in the near future if there is no resolution to the crisis. The union’s national secretary Matt Staunton says this is because of the employers’ failure to reach agreement on how to address the deficit.

Aer Lingus and the Dublin Airport Authority have both said they will put cash into a new defined benefit scheme for future service, with workers contributing to a resolution through reduced pension benefits. Unions say the proposed employer contribution – worth about €200 million – is not enough.