AER Lingus has issued a shock warning to its workers that if the hole in its pension scheme is not addressed they could receive only 4pc of their expected benefits.
The airline has issued a statement to the stockmarket on its pension scheme.
It said the shortfall in the pension stood at €748m at the end of May.
According to the Aer Lingus statement, if the scheme had been wound up at that time current employees and those with deferred pensions would have received only 4pc of their expected benefits.
Those already drawing pensions are unaffected.
Aer Lingus is proposing to close the scheme to new entrants and freeze payments for current members.
The airline wants to replace the current pension fund with a defined contribution scheme.
Aer Lingus promised to make a once-off payment to kickstart this scheme if workers agree to pay restraint.