One More Thing: Pension saga is no fairy tale

The Aer Lingus pension saga is, by now, a little like the Goldilocks story – not too hot, not too cold, although quite a way off just right.

The airline's chief executive Christoph Mueller couches the situation in similar terms when asked to weigh up the present-day scenario and how things might be made to suit everybody.

“It is a classical brokered compromise. Nobody is really happy; nobody is really sad; everybody makes a little sour face but it seems to be the only way to get out of that,” he said this week of the solution currently in place.

This is no fairy tale story. The airline has made a contribution of €140 million to help plug a €780 million hole in the pension fund. Can it spare a little more?

Voluntary payment
"No. That is what we said . . . If you voluntarily sign up to such a process then you have to say from the beginning: 'Listen I know it's taking some risk but we will implement what the [Labour Court] recommendation is," said Mr Mueller.

“It came out, we put together a paper, visited all our shareholders, all our investors, talked them through the thing. We got their support. If I would now come tomorrow and say it is [now] €141 [million] I would lose all that support.”

And what about the further potential for industrial action? “You know we have no obligation to pay. We do that in order to improve our relationship with the employees. If a voluntary payment of €140 million causes a strike. . .” he ponders.

“I have three kids you know. I am familiar with those types of situations under the Christmas tree. You have to remain firm.”