Ryanair agrees pay cuts and shift changes to prevent job losses
The low-cost airline will now cut far fewer jobs than the 3,000 estimated, as 97% of pilots and more than 90% of cabin crew agree to changes
Dublin — Ryanair plans to cut significantly fewer jobs than the 3,000 it originally estimated, after 97% of pilots and more than 90% of cabin crew have signed up, so far, to pay cuts and work practice changes, its director of operations said on Friday.
Europe’s biggest budget airline had warned it would have to cut one in five of its pilots and cabin crew if they did not agree to pay cuts of up to 20% after the Covid-19 crisis ravaged its business.
The Irish airline struck a pay deal with Spanish pilots on Thursday, leaving agreements outstanding with pilots in Belgium and cabin crew in Italy and Germany.
“We haven’t finalised the number yet, we originally said there was going to be 3,000 redundancies but we have been able to reduce that significantly,” Neal McMahon said. “Broadly speaking [pilots and cabin crew] recognise the grim situation we are in and they have been pragmatic.”
Ryanair’s Italian cabin crew union has put an agreement out to ballot, while there were further talks in Germany on Friday and the airline is in the middle of a collective redundancy process in Belgium, Ryanair people director Darrell Hughes said.
While cabin crew in Spain failed to join pilots in agreeing terms this week, the collective bargaining system there allows Ryanair to implement the changes and Hughes is confident its position would stand up to challenge.
The executives added that the airline has managed its pilot numbers without redundancies to date through a mixture of voluntary part-time work, voluntary unpaid leave, and spreading shifts around.
Low-cost rival easyJet confirmed the loss of up to 670 jobs this week, part of a planned total of 4,500 that will also likely be trimmed due to agreements on part-time contracts, base transfers and unpaid leave.
British Airways, owned by IAG, said in April that it would need to axe up to 12,000 of its 42,000 staff to survive.
This week, Ryanair reduced its capacity by a further 20% for September and October after a re-imposition of some travel restrictions hit bookings.
McMahon and Hughes said the number of redundancies depends on how winter bookings fare and how much the pandemic disrupts travel in 2021. Ryanair increased flights to 60% of its normal schedule this month after resuming services in July.
“Airlines have, for a long time, relied on business traffic, visiting friends and relatives and maybe an older non-family market for travel in September, October, November,” Hughes said. “It’s a big question as to what that level of demand is going to be, but it’s not looking good at present.”
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