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Labour Court recommends improved Aer Lingus severance and early-retirement terms

By Cathal Brosnan

Historic decision · Decision date:

Place: no local area assigned from the source.

In 2004, the Labour Court recommended changes to Aer Lingus's voluntary severance and early-retirement package, including raising the maximum under option B from 130 to 145 weeks' pay. The recommendation was dated 8 October 2004.

The Services Industrial Professional Technical Union and Irish Municipal, Public and Civil Trade Union sought improved terms as Aer Lingus planned to reduce its workforce by about 1,300. The unions sought nine weeks' gross pay per year of service without a cap, among other changes. Aer Lingus said its existing package was generous and it could not sustain higher costs; 720 workers had applied.

The Court considered the overall package reasonable but said anomalies mainly affecting longer-serving staff should be addressed. It recommended early-retirement lump sums equivalent to 78 weeks' pay regardless of age, capped at potential earnings, and calculations based on basic pay on the leaving date, including increases due under Sustaining Progress.

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