Skip to content
Branch News

SIPTU protest over aviation pensions and Aer Lingus privatisation as Dáil resumes

Date Released: 28 Sep 2005

SIPTU is seriously concerned about the future provision of pensions for its members in Aer Lingus and the Dublin Airport Authority (DAA), according to SIPTU's National Industrial Secretary, Michael Halpenny. The need for clarity on the issue is now vital, he said.

With the Dail and Senate resuming today, airline pensioners took the opportunity to highlight concerns about their pensions by staging a protesting outside the Dail.

"An actuarial valuation of the Irish Airlines Superannuation Scheme - covering Aer Lingus and the DAA - found there was an aggregate deficiency of nearly €350m and that "the valuation of future contributions is not sufficient to cover the costs of benefits accruing in the future to current active scheme members". A subsequent report suggested that in a worse case scenario, the deficiency could be as high as €475m.

"If the Government decides to sell off a majority shareholding in the airline or break up the DAA, there is no guarantee that any new owner or majority shareholder would be willing to discharge such a liability. If that happens, it will have obvious implications for other members of the scheme, such as those employed by the DAA - with the total burden of such a deficiency falling on the remaining contributors.

"We want Transport Minister, Martin Cullen and the employers to clarify the situation and to give assurances to our members that their pensions will be protected and future indexation is secure.

"We have already told the Minister there can be no prospect whatsoever of any proposals in relation to Aer Lingus and the DAA proceeding any further until these issues are clarified and resolved to our members' satisfaction,

On the wider issue of privatisation Mr. Halpenny said that SIPTU is currently engaged in a lobbying campaign based on the Irish Congress of Trade Union's proposals for the establishment of a State Holding Company and has so far received the support of a number of county councils and local authorities.

"Under EU competition rules the Government is allowed to invest in Aer Lingus on the same basis as any other investor, but has decided not to do so. Therefore we want the Government to seriously examine the ICTU proposal that the Government's stake in the commercial State companies be transferred into a new State Holding Company," said Mr. Halpenny.

"Such a proposal should be considered in the context of social partnership which would mean Aer Lingus remaining in public ownership and still having access to the capital it needs for development and fleet replacement.

"There is no obstacle to this Government investing in Aer Lingus. The only obstacle is ideology," he concluded.