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Seanad
‹ Order of Business

Irish aviation pension cuts

Summary

Senator O’Brien objects to commencement orders cutting pensions for 15,000 Irish aviation scheme members and seeks ministerial statements; the Chair manages the proposed amendment.

Last evening, the Minister for Transport, Tourism and Sport, Deputy Paschal Donohoe, signed two commencement orders to tear apart the pension entitlements of 15,000 members of the Irish aviation superannuation scheme, IASS. All Members will have been written to by retired people in their 60s, 70s or 80s who will lose a minimum of six weeks pay, which is a more than a 10% cut, and will carry the burden of this Government's pension levy which, for them, equates to 2.53% per annum for the rest of the term because €28 million was taken out of this under-funded scheme by the Government to pay for other things. Now these retired members, who worked in Aer Lingus, Team Aer Lingus and the Dublin Airport Authority, will lose six weeks pay. Many of the people who will have written to Members are long-standing members of the scheme who have 30 years to 35 years service and who are called the deferred pensioners. They paid into this pension scheme, on a compulsory basis, from the age of 20 yers. They worked tirelessly to return Aer Lingus to profitability and for Team Aer Lingus, SR Technics and the Dublin Airport Authority. What has happened to them? What the Minister did last evening will mean up to 58% cuts in their pension entitlements. The average is 40% to 50%. There are 5,000 retired members and 5,000 deferred members, some 10,000 people and families. The 5,000 working members, who have been put into an inferior scheme, will also have their benefits cut. What is really annoying me about this and what I am disgusted about is that only last week the Tánaiste and Minister for Social Protection met some of the committees here to try to work towards a favourable solution which would not result in a 58% cut in some people's pensions and which would not take hundreds or thousands of euro from 70, 80 or 90 year old people. What happened yesterday was that the Minister signed the commencement orders even though nothing had come back from the Tánaiste and Minister for Social Protection.

Why did he do it yesterday? He did so because the debate on the Social Welfare Bill will take place in the Dáil this week, to which amendments have been tabled that will effect cuts to the IAS scheme under the State Airports (Shannon Group) Act. This was choreographed. Aer Lingus today announced that an EGM will be held in early December to vote on this issue. The Committee Stage debate here on the Social Welfare Bill will commence on 2 December. All of the amendments we have prepared in relation to that Bill will be negated because the Minister, Deputy Donohoe, has, in my view, subvented this process.

Comment on this
Denis O'Donovan An Leas-Chathaoirleach Fianna Fáil

Is the Senator seeking a debate on the issue?

Comment on this

I propose to seek an amendment to the Order of Business. I know that there are Labour Party Members opposite who have engaged with retired members of the airport scheme and who are also disgusted at what has happened. The Minister, Deputy Donohoe, needs to explain to this House the reason he saw fit to sign two commencement orders yesterday evening. As the House is not overly burdened with work today, I propose the following amendment to the Order of Business: "That, following statements on Horizon 2020, the Minister come to this House to explain the reason he saw fit to sign the commencement orders that have given rise to massive reductions in pension benefits for IAS scheme members." It would be necessary to provide only for a half hour debate with the Minister being given 15 minutes to make a statement and the leaders of the different groups being given time to respond. I ask that the Minister come to this House today to make that statement rather than go into hiding between now and the taking of Committee Stage of the Social Welfare Bill.

Also, this has happened in the week when it has been confirmed that €1.1 billion of the €21 billion given to AIB was transferred to its pensions scheme.

Comment on this

The Minister for Finance, Deputy Michael Noonan, allowed that to happen.

Comment on this
Denis O'Donovan An Leas-Chathaoirleach Fianna Fáil

The Senator's time has elapsed.

Comment on this

What is the difference between AIB workers and airport workers? Why was €1.1 billion put into one scheme and nothing put into the other?

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