SIPTU's Pensions Committee at the Dublin Airport Authority has told the company that it will not recommend acceptance of pension restructuring proposals to address as €750 million deficit in the joint Aer Lingus/DAA pension scheme.
SIPTU claims DAA employees will come out with worse pension entitlements than Aer Lingus members of the scheme.
The DAA has categorically rejected that claim, arguing that the proposals in the two companies are completely different and cannot be compared.
SIPTU, which represents a majority of employees at the DAA, has told the company that its proposals to address the pension deficit are inadequate, and will not be recommended for acceptance.
Yesterday, workers in Aer Lingus voted to accept restructuring proposals to address the deficit in their part of the joint pension scheme shared by the airline, the DAA and the Shannon Airport Authority.
However, the DAA and its unions have not yet finalised arrangements to address their portion of the deficit.
The DAA wrote to unions today noting the outcome of the Aer Lingus ballot, and that no ballot has yet taken place at the DAA.
Group Head of Industrial Relations John McCormack said the trustees of the aviation pension scheme (known as the IASS) have asked whether the DAA will make available proposed lump sums totalling €72 million as part of the implementation of the revised pension arrangements.
Mr McCormack noted that the trustee needs to know this in order to proceed with the technical steps required to progress the revised arrangements with the Pensions Authority.
Mr McCormack told unions the DAA has confirmed it will make the lump sums available to all eligible staff.
However, they will be conditional on each staff member completing a waiver form, the permission of the Pensions Authority, and approval from shareholders.
Mr McCormack said the DAA has taken this decision in the best interests of staff, warning that if the proposals do not proceed as envisaged, and given the tight timeline, any alternative trustee proposal would be "to the serious disadvantage" of DAA staff members.
Mr McCormack reassured unions that management will continue to seek engagement with staff representatives on a collective agreement in the context of the Expert Panel Report.
However, in today's response, SIPTU Pensions Policy Advisor Dermot O'Loughlin said the SIPTU pensions committee does not believe the DAA's proposals represent the best outcome that can be achieved through negotiation.
Mr O'Loughlin also claimed that DAA workers are coming out with significantly worse pension entitlements under the IASS restructuring than Aer Lingus members of the scheme.
The committee queried the assumptions on which the DAA is basing its calculation of benefits for members compared to the assumptions used by Aer Lingus, and criticises the level of contributions employers will be making to the new defined benefit pension scheme.
He describes the proposal to wind up a supplemental pension scheme known as the Aer Rianta Supplemental Superannuation Scheme which is in surplus as both illogical and unacceptable.
There are also outstanding issues regarding retirement ages and fitness tests for airport fire and police staff.
Mr O’Loughlin also noted that the DAA has stated that if the proposals are not accepted by employees in the Shannon Airport Authority before 31 December, when the IASS is wound up, the DAA will be absolved of all responsibility to resolve the pension dispute for DAA employees who transferred to the Shannon Airport authority on the 1 January 2013.
Mr O'Loughlin claims that this will add €15 million to the cost base of the Shannon Airport Authority - and he urged the DAA to extend the duration of their responsibility for their former employees.
The trustees of the IASS have already indicated that they will freeze the current scheme on 31 December.
Aer Lingus has made available €190.7 million to partially offset the impact of benefit cuts for members.
The DAA is putting up €72 million.
