AER LINGUS PASSENGERS could face disruption next month as SIPTU discusses strike action following the breakdown of talks last night about the €748 million deficit in the airline’s pension scheme.
The union which represents Aer Lingus employees is set to meet today to discuss possible strike action which could take place early next month.
Discussions about solutions for filling the hole in the pension scheme between unions and airline management were adjourned indefinitely by the Labour Relations Commission (LRC) yesterday.
Speaking on Newstalk Breakfast this morning SIPTU spokesperson Dermot O’Loughlin said industrial action is now “inevitable” and action by workers is likely to take place in early November.
“One choice [for employees] is to roll over and lose everything they’ve saved or try and see if they can bring this company who has nearly €1 billion in cash reserves to put some realistic funds towards resolving this issue,” he said.
In a statement yesterday Aer Lingus said it was “disappointed at the lack of progress” in the Labour Relation Commission.
“Aer Lingus believes that today’s discussions have been overshadowed and hampered by an interpretation by union groups that a proposal targeting “85 per cent of final incomes” has been agreed with the DAA,” it said.
However the airline said it has been confirmed by the DAA that the proposal under discussion with union groups does not target any such pension coverage level.
Commenting on the possibility of industrial action by workers represented by SIPTU, a spokesperson for Aer Lingus told TheJournal.ie, “We don’t anticipate any disruption to the schedule but if we become aware of a disruption we will be sure to update customers.”
Aer Lingus said it remains available to resume discussions with the union groups “in order to reach a solution and believes that the LRC is the appropriate forum in which to achieve this solution”.
When contacted by TheJournal.ie, Dublin Airport Authority declined to comment on the talks or the possibility of strike action within Aer Lingus.
The DAA is still currently in talks with unions about issues surrounding the pension scheme.
Aer Lingus has previously warned that employees could receive as little as 4 per cent of their expected pension benefits if they did not accept a deal, given the size of the deficit in the pensions scheme.
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