Aer Lingus today pledged to make a one-off payment of €190.7 million to resolve a long-running dispute over its pension scheme.
The Irish carrier has called an extraordinary general meeting in Dublin on December 10 to seek approval for the proposed solution “to address issues arising from the funding deficit” in the Irish Airlines Superannuation Scheme (IASS).
The airline hopes the move will “substantially reduce” the industrial relations risk following a series of strikes by staff.
Aer Lingus chairman, Colm Barrington, said: “Following four years of complex, multi-party negotiation, we are pleased today to issue a circular to shareholders which outlines the proposed solution to address the issues arising from the deficit within the IASS.
“As previously outlined, we believe that this solution, which represents a compromise by all parties, is the only solution which is capable of being implemented.”
He added: “The IASS is no longer a viable scheme for the provision of pension benefits for our employees. A key objective of our IASS proposal is to establish a modern, single employer pension arrangement which will be fit for purpose in the context of the highly competitive European airline sector.
“This proposal will provide a level of clarity on pension benefits as well as providing a measure of cost stability for Aer Lingus. The solution will also mitigate significant industrial relations risks for Aer Lingus.”