The largest union at Dublin Airport, Siptu, has written to the Minister for Finance Brian Cowen in a last-ditch attempt to get him to intervene in the row over the airport pension scheme which is facing a major deficit.
The civil aviation branch of the union is asking Mr Cowen to force the various companies linked to the scheme to accept their portion of the looming deficit. The three companies linked to the scheme are Aer Lingus, the Dublin Airport Authority (DAA) and SR Technics. A recent study by consultants Mercer estimated the scheme could be facing a future deficit of €336 million.
The Irish Airline (General Employee) Superannuation Scheme is set to go into a deficit over the next few years if it continues to out inflation-linked benefits, as has been its practice.
Because of this, Aer Lingus is planning to set up two supplementary funds, worth €104 million, to shore up its portion of the deficit.
But the letter from Siptu's civil aviation branch claims the DAA has not accounted for its portion of the liability, which it says comes to about €138 million.
The letter, written by branch organiser Dermot O'Loughlin, also says there is a third sum of €427 million which cannot be charged to any other employer. It clams SR Technics, which was originally Team Aer Lingus, may not be liable for this portion. The letter broaches the idea of the Minister directly intervening with the DAA. "Will the Minister instruct his agent, the Dublin Airport Authority, to confirm their acceptance of an indexation deficit of at least €138 million?"
The letter suggests the airport authority should start making provision for its pension liability in its accounts. The letter emphasises that with Aer Lingus so close to an initial public offering (IPO), there is little time left to clarify who has responsibility for the various liabilities expected to arise in the scheme.
"Minister, we cannot over-emphasise the extreme urgency that the thousands of pension members and their respective families, place on this issue. It is critically important that comprehensive global resolutions are proffered for all members, rather than narrowly-focused solutions for one section of the problem," writes Mr O'Loughlin.
It is understood the letter has been copied to the Minister for Transport, Martin Cullen.
So far the DAA has declined to comment on any potential deficits in the scheme, pointing out that the scheme is currently in surplus. Aer Lingus's proposal to set up two supplementary funds are being studied by Siptu and the other union at the airline, Impact.
Preparations are continuing on the IPO for Aer Lingus. It is scheduled to take place in September.
