Irish low cost airline Ryanair Holdings Plc (RYAAY, RYA.L) condemned the Board and Management of Aer Lingus (AERL.L) which has accepted the latest crazy Irish Labour Court recommendation that another 170 million euros to 200 million euros of shareholder funds be squandered to compensate Aer Lingus staff for a pension deficit which Aer Lingus has repeatedly assured shareholders is a defined contribution or 'DC' pension scheme, and for which Aer Lingus has no further liability.
" If, as Aer Lingus' IPO prospectus (and every subsequent annual report) confirmed, neither Aer Lingus nor its shareholders have any liability towards this 'DC' pension scheme, then why is yet another 170 million euros to 200 million euros being wasted on yet another pay off for Aer Lingus' staff," Ryanair Holdings said in a statement.
Ryanair said it many times pointed out that that Aer Lingus' staff have blackmailed the Government and trade union controlled Board of Aer Lingus, to enrich themselves at shareholders expense at a total cost of over 600 million euros and rising.
Ryanair believed that these 600 million euros staff pay-offs over 7 years shows that the Board of Aer Lingus, which is controlled by the Irish Government and trade union bosses, cannot be trusted with shareholder funds. They roll over every time they are threatened. Ryanair believed that Aer Lingus will, with the connivance of the Irish Government, continue to squander shareholder funds every time they are threatened by the vested interests of staff.
Ryanair said over the past 7 years since Aer Lingus' flotation, more than 600 million euros in "exceptional payments" has been unjustifiably snatched by staff, while the Board and Management repeatedly promise shareholders that each time would be the "last time".
Ryanair noted that it will vote against this unwarranted and unjustified pay-off of up to 200 million euros to a 'DC' pension scheme which Aer Lingus has confirmed it has no liability for. However since Ryanair's minority stake gives it no influence or control over Aer Lingus it will yet again be voted down by the Government and unions who control and run Aer Lingus.
Ryanair believed that this 600 million euros to 630 million euros of exceptional payments to Aer Lingus staff over the last 7 years since its IPO is a scandal which must be exposed and ended. Ryanair calls on the Board of Aer Lingus to stand up for shareholders and resist this industrial relations blackmail by unions and staff.
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