Aer Lingus warns staff it will not pay productivity payments

Friday 28 February 2014 18.57
Christoph Mueller spoke to staff today about the Greenfield payments
Christoph Mueller spoke to staff today about the Greenfield payments

Aer Lingus has warned employees it will not pay out gain-sharing or productivity payments due next month while the pensions dispute remains unresolved.

Aer Lingus has warned employees it will not pay out gain-sharing or productivity payments due next month while the pensions dispute remains unresolved.

SIPTU has threatened to mount a four-hour stoppage at Aer Lingus as well as Dublin, Cork and Shannon airports on 14 March in the row over cuts in pension benefits.

The payments are due under a previous cost reduction and productivity agreement known as Greenfield.

It provided for a lump sum to be set aside each year for four years to be redistributed to staff provided certain targets were met.

Last year the payments averaged around €1,200-€1,400 per person before tax.

However, it is understood Chief Executive Christoph Mueller today told staff that until the long-running dispute over pension cuts is resolved, the company will not issue the Greenfield payments.

The Aer Lingus announcement is set to ratchet up tension in the pensions row.

It could draw in groups who have not previously been involved, including staff who are not members of the controversial IASS scheme.

It is unclear whether the productivity payments will just be withheld for SIPTU members of the troubled IASS pension scheme who are set to strike, or whether the payments will also be withheld from the entire workforce.

Keywords: aer lingus