In 2006, the Labour Court recommended a 4% pay increase for Aer Lingus staff, changes to long-service increments and a higher death-in-service benefit after a dispute with Services Industrial Professional Technical Union, Aer Lingus Craft Group of Unions and IMPACT. The recommendation was signed on 1 August 2006.
The dispute arose from negotiations over Aer Lingus's 2004 Business Plan. The unions sought a 5% basic pay rise, improved increments and changes to pension benefits. Aer Lingus rejected the claims and later put forward revised proposals, saying its package fairly rewarded employees while helping the airline control costs in a competitive sector.
The Court recommended the 4% increase in two phases, alongside the lump-sum payments in the company's original offer. It also recommended moving increments payable at 25, 30 and 33 years of service to 20, 25 and 30 years; the 35-year increment would stay unchanged. The death-in-service benefit would rise to 2.5 times salary. The Court did not recommend the unions' pension-coordination claim, though it said a future actuarial surplus could provide additional benefits. In considering pay, it took account of the proposed 2% increase in employee pension contributions needed to secure indexation.