Aer Lingus Halts Increments

Shamrock231

http://www.rte.ie/news/2013/0213/367653-aer-lingus-to-halt-increments-over-pension-deficit/

I can't tell if this is the solution to the pension issue, or just a threat to get staff to get their act together and agree to one of the already proposed solutions. Anyone?

Dacian

Well fair play to EI mgmt for their bad timing on that announcement. I had read a few weeks ago that the Labour Court had proposed a solution to the pension deficit issue that involved halting increments due to staff (these have in fact been frozen since late 2007....the freeze was extended as part of the Greenfield plan)

The Labour court proposal was that salary increments would be frozen (salary cost stabalisation was the term I think) for a defined period, which would allow the board to approve a lump sum payment into the pension. Hand in hand with this all current staff would transfer to a new pension scheme.

Now I am not sure how this unilateral EI announcement ties into the LC proposal. Looks to me as if EI are playing hard and fast with the spirit of the LC process. I agree that the issue needs to be sorted very quickly for EI to move forward....but this action seems like it will be seen in the wrong light by staff members looking at their pensions going down the tube.

Personally I like the idea of annual profit sharing....I think SouthWest and Lufthansa operate a system like this. But thats not great news for people expecting a 1-5% salary increase annually (I have no idea what the annual increments amount to)

seanmacc

I currently work for a transport company (a very profitable one) who have decided to not pay out increments to staff despite several Labour Court recommendations to pay them. Aer Lingus are hardly a company that's going down the tubes and should the staff take them to court under the payment of wages act the staff will surley win (eventually).

There seems to be a preception by the general public about employees increments as being greedy and having no place in the current economic climate. Lest we all forget why most incremental systems were brought into large companies and that was to keep the cost of labour down during the boom and to stop demands for large pay increases. Now that the climate is not so rosy it annoys me when profitable companies use the recession as an excuse to cancel all negotiated labour settlements. You can be garaunteed that some director or HR manager will get a hefty bonus for stopping the increments.

homerjay2005

more strike action on the way i guess!?

Dacian

homerjay2005 wrote: »

more strike action on the way i guess!?

I would hope not......but it seems to me that such a unilateral decision by the company whilst the Labour Court process is still ongoing is not showing a willingness to engage fully with the process. If the unions refused to withdraw work to rule while in the LC the company would be calling 'foul'.

kona

homerjay2005 wrote: »

more strike action on the way i guess!?

When was the last strike?

Stovepipe

The Company wants us employees to continue the existing pay freeze, continue to tolerate worsening terms and conditions, continue to deliver savings and productivity and take a huge hit on our future pensions, while the managers collect tasty bonuses and the Company is making money and has a huge cash pot and in the face of heavy tax hits (USC/water/property/house). I don't think so.Whatever goodwill is left is rapidly eroding...

regards
Stovepipe

starvin

Stovepipe is right in what he says but another problem is that a large number of employees in Aer Lingus are not, or have never been, part of that particular pension scheme.

I can't see those people being happy to accept another three years of no increments.

coolhandluke

Stovepipe wrote: »

The Company wants us employees to continue the existing pay freeze, continue to tolerate worsening terms and conditions, continue to deliver savings and productivity and take a huge hit on our future pensions, while the managers collect tasty bonuses and the Company is making money and has a huge cash pot and in the face of heavy tax hits (USC/water/property/house). I don't think so.Whatever goodwill is left is rapidly eroding...

regards
Stovepipe

Sounds very like the public service, those at the top making proposals that effect them the least, while making out like bandits themselves.

Tenger

starvin wrote: »

Stovepipe is right in what he says but another problem is that a large number of employees in Aer Lingus are not, or have never been, part of that particular pension scheme......

From the media coverage I got the impression that pretty much all staff apart from pilots were members of the IASS?

Suasdaguna1

Stovepipe wrote: »

The Company wants us employees to continue the existing pay freeze, continue to tolerate worsening terms and conditions, continue to deliver savings and productivity and take a huge hit on our future pensions, while the managers collect tasty bonuses and the Company is making money and has a huge cash pot and in the face of heavy tax hits (USC/water/property/house). I don't think so.Whatever goodwill is left is rapidly eroding...

regards
Stovepipe

This is how most companies operate now....get kids in to do seasoned veterans jobs and hope for the best.

From engineers to pilots, no one is safe. The desert beckons.

starvin

Tenger wrote: »

From the media coverage I got the impression that pretty much all staff apart from pilots were members of the IASS?

Not quite true. Almost half of the department I'm familiar with are not part of the IASS.

MoeJay

Hmmm, wasn't there a finding in the Right Commissioners a few years ago where they found that Aer Lingus had acted unlawfully in withholding increments....?