Dáil Éireann Debate, Thursday - 15 May 2014
1. Deputy Timmy Dooley asked the Minister for Transport, Tourism and Sport if he will provide an update on the expert review of the Irish airlines superannuation scheme dispute; his views on the threat of strike action at Aer Lingus in the summer months; and if he will make a statement on the matter. [21651/14]
Amharc ar fhreagraI am seeking the Minister's intervention in the ongoing industrial unrest at Aer Lingus. The Minister, like everybody else, is acutely aware of the damage that the threat of strike action can do to the image of a country, especially at this time of year. It has a negative impact on the sentiment expressed towards that country and, in particular, on the potential actions of a person who might want to visit it. I appeal to the Minister to address this matter in the most urgent manner possible.
Efforts to address the future funding of the Irish airlines superannuation scheme date back many years and span the terms of several Governments. As it is not a public sector pension scheme, I do not have the authority to prescribe or impose a solution. While I want to help, this is primarily a matter for the trustees, the members of the scheme, the companies participating in the scheme and the Pensions Authority, which is the regulator of such pension schemes.
Following consultations between my Department, the Department of Jobs, Enterprise and Innovation, the Irish Business and Employers Confederation and the Irish Congress of Trade Unions, an initiative was taken to establish an expert panel in an effort to broker a compromise. The panel was asked to carry out an investigation into how the industrial relations issues relating to the scheme might be resolved. It has given an update to the Department on its progress and is continuing to work intensively on the matter. I have emphasised the need for the parties to put all their efforts into engaging with the expert panel. It is important for the panel's work to be allowed to continue without interference.
The outcome of the recent ballots by IMPACT cabin crew at Aer Lingus was very disappointing. IMPACT's decision to serve strike notice on the company for action on Friday, 30 May next, which relates to rostering issues rather than the pension scheme itself, was also disappointing. It follows the most recent threatened strike action over St. Patrick's weekend, which means there have been three threatened strikes this year. Industrial action and the threat of industrial action are highly disruptive for passengers and are damaging to the company's position. As Minister with responsibility for transport and tourism, I encourage all the parties to work to find a resolution without repeated threats of industrial action. The Labour Relations Commission and the Labour Court are available to Aer Lingus and IMPACT. I encourage both parties to make full use of the State industrial relations machinery that is available to them.
The State industrial relations machinery is just not working for the aviation sector, unfortunately, particularly when it comes to the ongoing dispute about the pension scheme for the airports and the former State airline. The unions, for their own reasons, believe they have no choice other than to engage in the kind of stand-off in which we now find ourselves. While I accept that the current threat of strike action for later this month does not relate to the issue of pensions, it is part of a bigger industrial relations issue. It does not seem possible to resolve this dispute in the normal way. It is incumbent on the Minister to involve himself more fully in this crisis, perhaps by putting in place and developing a more comprehensive framework for its resolution. He pointed out in his response that he is not the trustee. He indicated in the not too distant past that if he were the trustee, or if the resolution of this matter fell within his remit, he would have brought forward a solution that would have resolved the issue by now. I appeal to the Minister now, as I did then, to publish his views and ideas. Perhaps they could act as a template or a basic discussion document for those who are seeking to find a resolution to this issue. I should also mention in this context that section 33 of the State Airports (Shannon Group) Bill 2014 creates further issues with regard to pension entitlements. We will discuss that legislation when it is brought before the House. It is adding to the concerns of workers.
There is no point in publishing a draft solution if it is not going to get the support of parties. The whole point of a negotiation like this is to try to identify the gaps between the various parties - a number of gaps exist in this case - and come to a solution step by step. That is what the expert panel is doing. The panel will report to us again at the end of the month. I hope that in time, it will be able to propose a solution that is acceptable not just to the members of the scheme - the pensioners and the airport workers who are covered by it - but also to the shareholders in the companies involved. It will have to be acceptable to the Government, which is the shareholder in the Dublin Airport Authority and a minority shareholder in Aer Lingus, and to the other shareholders in Aer Lingus. I remind the House that the Government was on the losing side when the remuneration of the CEO was voted on a few weeks ago. Pensioners and members of the scheme need to bear in mind that any money injected into the scheme by Aer Lingus will need the support of the institutional shareholders in Aer Lingus. I do not think the penny has quite dropped in that respect.
While I accept that is the case, I emphasise that we have a crisis on our hands. Tourism is an important part of our economy. The regrowth of the tourism industry and the focus on Ireland as a destination have the potential to ignite a level of activity within our retail and hospitality sectors. The Minister is well aware from his work in the Department that people in the United States, in particular, have a relatively short window in which to take their vacations. They plan on the basis of certainty. If there is any uncertainty regarding a specific destination, travel agents will advise people to consider some other location. If that were to happen in the case of Ireland, it would be hugely damaging to our tourism industry. I do not think the Minister can argue that even though he is a significant shareholder in Aer Lingus and a total shareholder in the airports, this matter does not fall within his remit.
The Minister and the Minister of State, Deputy Alan Kelly, must do a great deal more to seek to put in place a framework for resolving this issue once and for all, which may require looking beyond the standard industrial machinery. The one-size-fits-all approach at the Labour Court and the Labour Relations Commission is not working in this instance and has not worked for some time.
I appreciate and share the Deputy's concern for tourism. I am delighted to report that since the Government made up of Fianna Fáil, the Green Party and Independents was replaced by this Administration, the number of international visitors to Ireland has increased by 1 million, with further increases expected. There has been a great deal of traffic at Dublin and Shannon airports in particular, as well as Knock, in recent months. Passenger numbers at Shannon, for example, are up by more than 6% this year, which is very positive.
There is currently no threat of strike action in regard to the pensions dispute. A strike is threatened, however, in respect of rostering arrangements at Aer Lingus, which, if it occurs, will be particular to that company. The level of competition that exists among airlines means that most passengers will have other options. The threat of strike action at Aer Lingus is being used to put pressure on the company to find a resolution to the rostering issue. I encourage Aer Lingus management and IMPACT to make full use of the Labour Relations Commission and the Labour Court to come to an agreement. I am sure it can be done.
