Business Irish

Thursday 17 October 2019

Aer Lingus board says it backs €140m pension contribution

Aer Lingus Air Hostess Emma Fitzsimons. Photo: Ronan Lang
Aer Lingus Air Hostess Emma Fitzsimons. Photo: Ronan Lang

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.

Online Editors

Also in Business