Ryanair Dispute Over Pay Demands Escalates as Employee Council Seeks Involvement

Chris Ratcliffe  / Bloomberg

Passengers queue to board a Ryanair aircraft at Dublin Airport. Chris Ratcliffe / Bloomberg

Skift Take: Europe’s biggest discount airline requires its pilots to pay for their own hotels when they cannot return to their home base due to flight schedules. Thorny issues like that make a quick end to negotiations unlikely.

— Sean O’Neill

An adhoc pilot group at Ryanair Holdings Plc is set to detail its pay demands to other aviators as the airline’s management contains fallout from the cancellation of more than 20,000 flights.

The European Employee Representative Council, which is seeking to organize a company-wide negotiating body, outlined the proposal on Sunday, two days after Ryanair’s biggest pilot base rejected a company peace offering, according to a letter seen by Bloomberg. Ryanair’s London Stansted base voted 60 percent to 40 percent on Friday against raises of as much as 22,000 euros ($26,000), the company said.

The stand-off between pilots and executives has simmered since the airline was forced to cancel flights affecting about 700,000 customers due to a mess-up of rosters that left it lacking enough crew to maintain its schedule. The EERC, created after the cancellations last month, is seeking to establish a collective bargaining group across the carrier’s 86 bases.

Unreasonable Stand

“Please ask yourself one question: if our negotiating team could deliver the conditions and pay proposal, would you accept it?” EERC organizing member Imelda Comer wrote in the letter to pilots. “We promise that it will be very hard to see how any pilot could refuse it. Why not stand together and demand what we are entitled to?”

Ryanair will hire new pilots at the higher rates rejected at Stansted, a spokesman for the company said Friday, adding that Ryanair “will continue to engage with the London Stansted ERC to understand how it can address their remaining concerns.” The pay offer, which has been accepted at more than 10 bases, lifts salaries ahead of rivals Norwegian Air Shuttle ASA and Jet2 by about 20 percent.

Hiring Pilots

The Stansted pilots rejection follows a series of blows to Ryanair, including a call to strike by an Italian union and pledges of financial and logistical support from three major U.S. labor groups. Ryanair has said it will not recognize any union body, citing two previous failed efforts to organize its pilots in 2004 and 2012.

The company is hiring more staff to manage its rosters and has named Malaysia Airlines Bhd. Chief Executive Officer Peter Bellew to replace its former chief operations officer who left the company this month. Bellew, a former Ryanair executive, will rejoin on Dec. 1.

©2017 Bloomberg L.P.

This article was written by Benjamin Katz from Bloomberg and was legally licensed through the NewsCred publisher network. Please direct all licensing questions to legal@newscred.com.

Ryan Wolkov

PRC Time Shares

Author: Ryan Wolkov

Powered by WPeMatico