European Transport Workers’ Federation
SOCIAL DUMPING IN THE AIRLINE INDUSTRY
ETF VIEWS
LO - AVIATION CONFERENCE 2014
Oslo, March 20, 2014
François Ballestero, ETF Political Secretary
Legislation at European Level
1.
Regulation in 2008 on operation of air
services in the Community: national social
legislation should apply in the country where home
base is located (non binding)
2.
Regulation in 2008 on contractual
obligations (Rome 1): a) the employment
contract shall be governed by the law chosen by the
parties b) in case of no choice, the employment
contract shall be governed by the law of the country in
which the employee habitually carries out his work
Legislation at European Level
3. Regulation in 2009 on the coordination of
social security systems: for aircrew, social security
is goverend by the law of country where the crew member
has his/her homebase but:
a) the home base principle applies only when the home
base is stable (in other cases, Member States determines)
b) 10-year transition period for the implementation.
4. Regulation in 2014 on Flight Time
Limitations (FTL): together with EASA measures, it
creates the first EU-wide FTL for aircrew
Some national legislations
France
Social Decree in 2006 in aviation: all airlines
having bases in France must apply French
labour code
2. Belgium
Law on bogus self-employment in 2012:
some guarantees and protections are given
to the person executing this kind of work
1.
Reality in civil aviation
with some companies
New employment models:
This includes having bases in another country where the air
carrier has its principal place of business and/or the aircraft
has moved to another country
1.
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Flight crew
Bogus self-employment
Based in foreign country (EU and non-EU)
‘pay to fly’
2. Cabin crew
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Agency work
Seasonal work, precariousness
Specific case of Ryanair
1.
2.
a)
b)
c)
At least 220 self-employed pilots working for Ryanair in
Irlande
Several court cases by former employees against Ryanair:
Ruling in Charleroi in 2013 (5 cabin crew claiming € 20,000
each): Crewlink is condemned. Crewlink appealed;
Ruling in Aix-en-Provence in 2013 (pilot and cabin crew
unions and individuals – breach of social decree): Ryanair
lost. Ryanair announced they will appeal;
Ruling of Moss district court in June 2013 (Italian cabin crew
was dismissed): the cabin crew lost and went to appeal –
Ruling of Borgarting Court of Appeal in August 2013: Ryanair
to pay, Ryanair appealed. Ruling of Court of Appeal of
Borgating in March 2014. The cabin crew won the case and
she is awarded legal costs but the question of the law
applicable is still pending.
Specific case of Norwegian
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Long-haul operations launched in May 2013
operated by Norwegian Long Haul (NLH)
In February 2014, Norwegian Air International
(NAI) received an operating license and an AOC
issued in Ireland (that allow for future traffic
rights to and from the EU and to employ
flight/cabin crew on foreign contracts)
Flight crew are being hired through an agency in
Singapore and cabin crew in Thailand (to be
confirmed)
Where are the loopholes?
1.
2.
3.
4.
5.
There is a single European market, but
there is no uniform social legislation
There is a lack of EU social legislation
Social legislation (if existing) is not aligned
with technical legislation (ex: to link the
home base and the social security benefits
and the labour laws)
Different taxes and social security systems
in the EU Member States
Open skies are creating additional problems
What are the ETF alternatives?
1.
2.
3.
4.
5.
6.
Trade unions must be recognized in all companies in all
countries where they employ personnel and must be able to
negotiate collective agreements;
Adoption of national social decrees (as in France)
Adoption of an ‘European social decree’ (labour legislation of
country of home base applies)
Revision of the Regulation on common rules for the operation
of air services to make binding the application of the national
social legislation
Adoption of an EU legislation on self-bogus employment
(beginning of definition in the current revision of the posting
directive) and review and improve the temporary agency
directive
Improvement of social security coordination (shortening the 10
years transitional period and clarify in case of multiple bases)
www.etf-europe.org