Aer Lingus board says it backs €140m pension contribution
THE board of Aer Lingus has said it is backing a proposal to make a once-off contribution of €140m to employee pensions in a bid to avoid possible strikes at the airport.
This follows a Labour Court recommendation of a once-off contribution for existing employees in a new defined contribution pension scheme for existing workers.
The deal will help address a hole in the pension scheme – it had a deficit of €700m at the end of 2011.
The proposal will be put to shareholders and will be implemented if staff and union members also agree.
However, Ryanair, which holds a stake of just under 30pc in Aer Lingus and this year made its third failed attempt to take the latter over, has said it opposes such a backing of the pension pot – although it does not have enough votes to block it alone.