Varadkar: Ryanair could block Aer Lingus pensions solution
The Minister for Transport, Leo Varadkar, has warned that Ryanair could block any proposed solution to the Aer Lingus pensions dispute.
Varadkar said Ryanair could use its stake in Aer Lingus to vote against plans to increase its funding for the staff pension fund.
A panel of experts says Aer Lingus should put €37m extra into the fund to plug a deficit.
Such a measure will require a vote of the shareholders - and Ryanair could use its 30% stake in Aer Lingus to block it:
"I haven't discussed this [with them] … they have … made their position very clear."
"They'll be opposing it. They think the contribution being asked of the company, and indirectly, of the shareholders, is too great."
The expert panel formed to resolve the pensions dispute issued a report on June 16, proposing a contribution by Aer Lingus of €146.7m to the pension scheme.
This was higher than the €110m previously recommended by the Labour Court in 2013.