Lucinda Creighton (Dublin South East, Independent) | Oireachtas source

I thank the Minister for being present in the Chamber. Deputy Peter Mathews has submitted this Topical Issue matter every day since 22 October and I want to acknowledge this. It is unfortunate he will not have a chance to speak on it today. Aer Lingus was a State company when these contracts were entered into and when current and deferred pensioners paid into the defined benefit pension scheme. Today the Government has a 25% shareholding in Aer Lingus, so it has a moral duty of care in this respect. What I have encountered from discussing this with pensioners who are on small meagre pensions is that it is the difference between survival and not. It is a most serious issue. It is taking bread from the table of families and older people, in particular in the city but in a wider area also.

Pensioners have been abandoned by Aer Lingus, the DAA and the trade union involved, Impact. It is outrageous that pensioners were excluded from a decision-making process which affected their pensions. Others voted to benefit themselves while excluding those who would take the hit. A total of 70% of Aer Lingus current employees voted to cut pensioners' annual income, starting in January 2015. This is completely out of kilter with any sense of justice or fairness. In other unions, such as teachers' unions, retired members have just as much influence as and an equal say to those in current employment. It beggars belief that this has happened.

A total of €175 million of the pensioners' defined benefit pension saving fund was redirected without their permission or consent. They were not even consulted. Various figures are circulating, but at least 5,000 retired people are involved and at least 5,000 deferred pensioners and possibly more. It was a unilateral decision which did not involve any consultation, and it was completely unfair. Pensioners themselves had no involvement whatsoever in any of the resolution of the Irish airlines superannuation scheme, IASS, deficit negotiations which led to this decision on cutting their income. They are the only group of members of the IASS pension scheme to whom the employers, namely, Aer Lingus and the DAA, decided not to provide any compensation to mitigate against this cut in their yearly pension.

This is all at a time when the Aer Lingus share price is rising. What is most reprehensible is that the price of Aer Lingus shares rose fairly substantially when ICTU told the company the ballot had resulted in a 70% vote in favour. This had a direct impact on the value of shares in Aer Lingus, which is extraordinary.

A 10% cut may be perceived to be minor or negligible in some people's minds, but to low income pensioners it is substantial. I could read some of the e-mails and letters I have received. The matter has already been raised in the Dáil by Deputy Clare Daly and others. I received an e-mail-----

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