Aer Lingus pension dispute returns to Labour Court

Tuesday 19th February 2013

The Aer Lingus pension issue is to return to the Labour Court. The move follows a break-down in direct talks unions and Aer Lingus management aimed at giving effect to a December 2012 Labour Court recommendation, which established a target level of benefit for staff in any new scheme.

In a notice to members last week, IMPACT official Michael Landers said an evaluation of the cost of meeting the Court’s targets had been carried out by consultants Tower Watson on behalf of the union. 

But IMPACT said significant differences between the company and the unions had emerged over how much funding Aer Lingus should put up, as well as company proposals for cost-offsetting measures and technical assumptions underlying the proposals. 

These and other issues have been referred back to the Court for resolution, in accordance with its December 2012 recommendation. A recommendation is expected before the end of March.

Responding to an Aer Lingus statement, which said the company would block any pay increases, including increments, until the pension issue was resolved, Michael outlined IMPACT’s position that increments remain a contractual entitlement and should be paid as they fall due.