Aer Lingus pilots have been told they will not receive a long-awaited pay award until the firm has resolved its trading difficulties. The 550 pilots, who are members of IMPACT, had hoped an independent arbitration body would award them pay increases worth £30,000 (€38,100), bringing the top of their scale to at least £125,000 a year.

The award only provides for a £21,000 a year increase in basic pay at the top of the scale and Mr Gerard Durcan SC, chairman of the arbitration tribunal, states in his findings that even this proposal should not be implemented in the "radically altered position" of the airline. Instead "implementation should be deferred until the company is in a financial position to do so". The decision underlines the seriousness of the crisis facing the airline as SIPTU and IMPACT leaders prepare to meet the Taoiseach, Mr Ahern, in Government Buildings this evening. SIPTU national industrial secretary Mr Noel Dowling said yesterday the unions had still to be convinced that the Government was treating the crisis with the seriousness it required. "This meeting gives the Government an opportunity to show it is serious." But without private sector investors, the Government's ability to invest appears non-existent due to EU policy.

The firm has welcomed the arbitration finding on pilots' pay. It said yesterday increases for pilots had to be discussed in the context of the survival plan.

But this plan calls for even more radical productivity measures than those provided for in Mr Durcan's report. If pilots are not receiving any pay increase, they may be reluctant to concede any productivity measures. While pilots are by far the highest paid Aer Lingus employees, they are now the only group within the firm not to get a significant pay rise this year. Last year they earned £30 million out of a payroll worth £180 million. This year that figure will remain stationary, while the overall payroll has risen to £210 million. The report also highlights that pilots' pay accounts for only 4 per cent of Aer Lingus expenditure. The EU average is about 8 per cent of airline expenditure, while the US average is 12 per cent of total expenditure.

IMPACT assistant general secretary Mr Michael Landers said last night that his members were pleased the award "recognises Aer Lingus pilots are significantly underpaid. At the same time, we accept the reality of the current situation and are happy to negotiate on future implementation".

About 200 Aer Lingus pilots earn less than £30,000 a year. The senior 40 or 50 captains earn £94,000 and the remainder earn £40,000 to £90,000.

Mr Durcan had proposed performance-related pay for pilots who work more than the standard 520 hours a year. Some pilots work 700 to 800 hours a year. It is usually impossible for them to take leave due.

The performance-related pay would have meant captains would be paid £50 an hour for overtime and younger co-pilots would receive £35 an hour.

The overtime would therefore have been worth £7,000 to £10,000 a year in some cases. Younger pilots at the bottom of the scale would benefit most from such an arrangement.

Meanwhile, IMPACT cabin crew held a mass meeting at Dublin Airport yesterday and called on the Government to "make an appropriate investment in Aer Lingus". IMPACT national secretary Ms Christina Carney said: "We would remind the Government and every politician in this country, that they will be judged on their actions not on their words."