ICTU tells Aer Lingus €110m 'not enough'
The Irish Congress of Trade Unions (ICTU) has written to Aer Lingus, formally notifying it that it doesn't believe €110m offered by the airline to help solve a pension crisis is sufficient.
The Irish Airlines Superannuation Scheme (IASS) has an €800m deficit that Aer Lingus, the Dublin Airport Authority and the pension scheme's trustee have spent well over a year trying to resolve.
But a plan hammered out in conjunction with the Labour Court earlier this year that would see Aer Lingus provide a total of €140m in funding to a new defined contribution scheme as part of a plan to tackle the deficit, was rejected by the Pensions Board during the summer.
Of that money, €110m represented an injection on behalf of active members of the IASS and €30m on behalf of former employees who are deferred members of the scheme.
The IASS trustee still has to come up with an alternative to present to the Pensions Board and the two sides have had discussions recently.
Last month, the trustee told unions that since the Labour Court plan that would see Aer Lingus and the DAA inject money into new schemes wasn't acceptable to the Pensions Board, the IASS members may have to take significant hits to their future entitlements.