Trade unions urge members to accept DAA pensions deal to address €800m deficit
Four trade unions have urged their members to accept proposals for a pensions overhaul at the Dublin Airport Authority (DAA) that will help address a near-€800m deficit at a scheme that serves thousands of workers.
In a letter to staff yesterday, DAA chief executive Kevin Toland said that the Irish Congress of Trade Unions has indicated that Impact, Mandate, Unite and the TEEU will hold ballots within a few weeks and advise members to accept proposals to resolve the pensions issue.
Efforts have been going on for years to address the deficit at the defined benefit Irish Airlines Superannuation Scheme (IASS), which serves about 15,000 past and current workers at the DAA, Aer Lingus and Shannon Airport.
And plans were eventually thrashed out during the summer that would see the IASS frozen and de-risked, with Aer Lingus and the DAA agreeing to stump up over €260m between them in order to kick-start new and separate defined contribution pension schemes for each company.
But Siptu - the biggest union at the DAA - still has issues with the planned pension resolution, particularly due to concerns from airport fire and police staff. It has not yet told members they should accept the proposals.
The DAA will meet Siptu representatives next week.
"Momentum is gathering pace, but the timeline for implementation remains tight," Mr Toland said. The DAA intends to have a new defined contribution scheme in place on January 1.
Aer Lingus staff recently voted to accept pension proposals, but the airline's shareholders will have to vote on them next month.