Shocked Aer Lingus workers told they may get only 4pc of their pensions

AER Lingus has issued a shock warning to its workers that if the hole in its pension scheme is not addressed they could receive only 4pc of their expected benefits.

The airline has issued a statement to the stockmarket on its pension scheme.

It said the shortfall in the pension stood at €748m at the end of May.

According to the Aer Lingus statement, if the scheme had been wound up at that time current employees and those with deferred pensions would have received only 4pc of their expected benefits.

Those already drawing pensions are unaffected.

Aer Lingus is proposing to close the scheme to new entrants and freeze payments for current members.

The airline wants to replace the current pension fund with a defined contribution scheme.

Aer Lingus promised to make a once-off payment to kickstart this scheme if workers agree to pay restraint.

via Shocked Aer Lingus workers told they may get only 4pc of their pensions – Irish, Business – Independent.ie.

via Shocked Aer Lingus workers told they may get only 4pc of their pensions – Irish, Business – Independent.ie.

Unions seek €330m from Aer Lingus and DAA to resolve pension deficit row

Unions at Aer Lingus and the Dublin Airport Authority say the two companies will have to contribute at least €330m between them to resolve the row over the €750m deficit in their joint pension scheme.

Management and unions at the two aviation companies have been locked in complex negotiations to address the deficit at the scheme known as the Irish Aviation Superannuation Scheme (IASS).

Last week, SIPTU withdrew strike notice to allow negotiations to continue.

The latest figures are contained in a submission sent by Irish Congress of Trade Unions Industrial Officer Liam Berney to the talks chairman, Labour Relations Commission Chief Executive Kieran Mulvey.

Unions calculate that Aer Lingus would have to contribute at least €200m, with the DAA paying €130m, to ensure that members receive the pension benefits they have expected from the IASS.

The unions say that stringent pension regulations and the unwillingness of employers to increase contributions to the existing scheme could force its wind-up.

The DAA said it was currently in a process at the Labour Relations Commission in relation to the pension issue.

It said that based on actuarial advice, the DAA offer would deliver a substantial pension for DAA staff at retirement.

It described SIPTU’s earlier description of the DAA’s offer as “derisory” as a misrepresentation of the facts.

Aer Lingus said it remained committed to finding an appropriate solution to the issues involving the pension scheme.

Aer Lingus and the DAA have proposed freezing the current defined benefit scheme, and using the assets to buy sovereign bonds to fund benefits.

In future staff from the two companies would belong to two separate defined contribution schemes – which carry more risk for the employee.

The document notes that settling the dispute over the pension deficit will bring considerable benefits to the employers, by transferring risk from the employers to the employees, by improving the balance sheets of both companies, and by enhancing the Aer Lingus share price.

However, it also warns that employees stood to lose a considerable portion of their expected benefits.

Informed sources noted that legal action could not be ruled out, either by shareholders in Aer Lingus objecting to further payments to pension funds, or from deferred members or retired members of the scheme, who are not represented at the negotiations.

It also remains to be seen what position will be adopted by the trustees of the IASS, who have ultimate legal and financial responsibility for the scheme.

via Unions seek €330m from Aer Lingus and DAA to resolve pension deficit row – RTÉ News.

via Unions seek €330m from Aer Lingus and DAA to resolve pension deficit row – RTÉ News.

NEWS NIBBLES

James Reilly Minister for Health

Reeling in the broken promises

“…the day that we don’t keep that promise, the day that we let you down, the day when we let your local services go when there’s nothing to replace it, that’s the day I’ll walk away, I’ll retire.”

James Reilly

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Congratulations to Leo Varadkar

Lion Mouth Varadkar appears to be showing some interest in the tourism portfolio. Three vacation over the summer, which included Euro 2012 and the Olympics. In addition, you know he even found the time to look for pay cuts for people on a fifth of his salary.

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A Political Joke

Four surgeons are discussing who were the best patients to operate on.

The first surgeon says, ‘I like to see Accountants on my operating table because when you open them up, everything inside is numbered.’

The second responds, ‘Yeah, but you should try Electricians! Everything inside them is colour-coded.’

The third surgeon says, ‘No, I really think Librarians are the best; everything inside them is in alphabetical order.’

But the fourth surgeon shut them all up when he observed, ‘You’re all wrong. Politicians are the easiest to operate on. There’s no guts, no heart, no balls, no brains, and no spine, and there are only two moving parts – the mouth and the arsehole – and they are interchangeable’

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Transport Minister Varadkar calls for agreement before airports strike over pension – National News – Independent.ie

TRANSPORT Minister Leo Varadkar has called on all parties to reach agreement before a strike grounds operations at the country’s main airports.

Passengers have been warned they face disruption on Monday when staff at Dublin, Cork and Shannon airports stage rolling work stoppages over a pensions row.

Aer Lingus has threatened to sue Siptu, its officials and members for two million euro a day for losses, while Dublin Airport Authority (DAA) will seek an injunction against the action at the High Court on Friday.

Mr Varadkar urged stakeholders in the Irish Airlines Superannuation Scheme to renew their efforts to reach agreement.

Talks aimed at resolving the dispute at the Labour Relations Commission (LRC) have been continuing since January.

“Minister Varadkar, who has been in regular contact with the stakeholders, said he is encouraging them to use the State machinery to resolve the current difficulties regarding the pension scheme,” his spokesman said.

“The minister said a renewed focus is necessary in order to avoid the proposed industrial action on Monday, which would cause huge inconvenience to the travelling public.”

The dispute centres on the Irish Airlines Superannuation Scheme, a pension pot jointly operated by DAA, Aer Lingus and SR Technics, which left Ireland in recent years.

The scheme has about 15,000 members but was in deficit by some €700m at the end of 2011.

Unions want Aer Lingus and the DAA to make significant investments to close the deficit in the fund.

Other unions involved in the dispute include Impact, Unite, Mandate and the TEEU, but they have not served notice of industrial action.

DAA maintains the stoppages are unwarranted while the industrial relations machinery of the state is fully engaged with this issue.

It is taking its court case amid claims some members, including fire, police and search units, cannot take industrial action because of existing agreements.

Elsewhere Aer Lingus said it has not breached collective agreements and warned it will hold Siptu and all relevant officers, officials and members personally liable in respect of the losses sustained if industrial action goes ahead.

The move could financially cripple Siptu, which has vowed to proceed with the action as planned.

via Transport Minister Varadkar calls for agreement before airports strike over pension – National News – Independent.ie.

via Transport Minister Varadkar calls for agreement before airports strike over pension – National News – Independent.ie.

Passing News Bites

 

Leo Varadkar/Cycle Routes

Minister for unused roads Leo Varadkar has instructed the national road’s authority to examine possible future cycle paths. The first proposed public route is Dublin/Galway. The Minster stated he would shortly implement this scheme, as there was no money left in the country to pay for fuel as the Government has now given away all domestic fuel to maintain the statues quo with offshore fuel.

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Central Statistics Office

New figures from the Central Statistics Office show that inflation rose to 2% in the year to August.

How can one believe figures when nobody has any money left to spend? Inflation is now the end product to the myth of disposable income.

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Rugby

Wasps rugby director David Young” It’s harder to qualify for the Heineken Cup from the Premiership than the Celtic league (RaboDirect PRO12). It does not seem fair.

We invented the game and it’s not right that those Irish teams keep winning…………im going to tell my mummy and take my ball home, so there!

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Siptu workers at Aer Lingus to strike

This is unlikely to happen, as SIPTU were unable to find any genuine workers.

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Get lost’ says Adams

They should be told to get lost.”

That is the reaction of Sinn Féin after the government’s economic advisors recommended even tougher budgets than planned by Michael Noonan.

Surly Jerry you mean disappeared.

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Department of Health explanation on emotional disorders

A nervous wreck: a man who has a house payment, a truck payment, a wife and a girlfriend…. and they’re all a month late!