Varadkar sideswipe at increase in pension payment to Aer Lingus chief

Mueller receives 47% increase in pension payment

Minister for Transport Leo Varadkar has taken a sideswipe at the increase in pension contribution paid by Aer Lingus to its chief executive Christoph Mueller last year. Mr Mueller's remuneration rose 18 per cent last year to €1.5 million, with his pension payment rising to €175,000 from €119,000 in 2012. This is against a backdrop of a dispute between Aer Lingus and current and former workers over pension cuts.

In a parliamentary question Independent TD Terence Flanagan asked Mr Varadkar if he could take any "action" given the State owns 25 per cent of Aer Lingus.

Quoting a constituent, Mr Flanagan said there was an “obvious inequity and injustice” in Mr Mueller getting an increase in his pension payment while the workers were “facing the prospect of a 20 per cent cut to their pensions”.

The Minister said Mr Mueller’s pay was decided by the remuneration committee and board of Aer Lingus. In an unusual move Mr Varadkar then added: “It would be inappropriate for my department to seek to take action in this regard. However, the correspondent’s point regarding the contribution to pensions is well made.”

Ciarán Hancock

Ciarán Hancock

Ciarán Hancock is Business Editor of The Irish Times