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DAA unions to ballot members on pension proposals

SIPTU has described the proposals as inadequate
SIPTU has described the proposals as inadequate

Unions, except SIPTU, at the Dublin Airport Authority are to ballot their members on the latest proposals, aimed at addressing the deficit in the aviation pension scheme and will recommend acceptance.

However, up to now, SIPTU which represents around 80% of unionised workers at the DAA, has described the proposals as inadequate, and has not indicated any plans to ballot on them.

In a memo to DAA staff issued today, DAA Chief Executive Officer Kevin Toland said the Irish Congress of Trade Unions has indicated that the IMPACT, Mandate, TEEU and Unite trade unions plan to hold member ballots in the coming weeks and to recommend the company's proposals as "the best that can be achieved from negotiations".

He described this as a welcome development.

Mr Toland told staff that following extensive negotiations, the DAA pension proposals represent a "full and final resolution" to longstanding pension issues.

He described the offer as fair, and said it will effectively offset the impact of the benefit cuts by the trustee of the current scheme, while enabling employees to build substantial new pension benefits.

Further talks are expected to get under way between management and SIPTU on outstanding issues over the coming week.

However, time is now of the essence, as the trustees of the scheme yesterday notified members that they will proceed with freezing the existing scheme and cutting benefits from 1 January.

In the memo Mr Toland told staff this makes it all the more important that they succeed in having new pension arrangements in place for staff by January.

He said that "hopefully" this will follow a collective agreement on the DAA's overall pension proposals.

Aer Lingus staff have already accepted proposals which include lump sums totalling €146.7m to kick-start new defined contribution schemes.

However, SIPTU has claimed that DAA members will emerge worse off than Aer Lingus staff, a view strenuously disputed by the company.

There are also outstanding issues involving later retirement dates for the Airport Fire and Police Service, and medical examinations for those personnel.