Both sides intend to sign a total of four collective labour agreements (CLA), based on German labour law, by March 2019. In addition to terms and conditions which are to be defined collectively by the end of February, the agreement also includes a timeline for a social plan and a works council to be established by the end of March. Until then, no industrial action will be taken.
By February 2019, all pilots based in Germany will be subject to contracts under German law instead of Irish law. This will also grant them the protection of German labour law. Furthermore, the memorandum of understanding also includes a number of improvements to be defined in a CLA.
Base pay will be restructured, and the formerly very large variable pay will be reduced, which leads to a significant increase of base pay. Copilots will receive 100% more guaranteed base pay, captains will receive approximately 33% more. With the change of applicable tax law form Irish to German law pilots will be subject to a substantial increase in net pay starting April 1st, 2019. The present scheduling model of 5-on-4-off will be continued under the agreement.
Agreeing on the establishment of a works council for Ryanair employees will also introduce co-determination into the company for the first time.
Last week’s change in German legislation, namely the “Betriebsverfassungsgesetz“ (Works Constitution Act) has preluded this. The change grants flight crews the right to form a works council based on labour law, should there not be a CLA in place providing such rights.
Lawyers Holger Dahl and Prof. Stefan Simon moderated the final phase of negotiations. It was on the basis of their suggestions that VC and Ryanair signed the agreement.
“By agreeing to these cornerstones a reentry into constructive negotiations has been enabled, after their failure last summer“, says Martin Locher, president of VC. “First I would like to thank our members who have fought for this success with great determination. In addition, our company council at Ryanair did a tremendous job reaching this agreement“, president Locher adds.
„Based on the change in German labour law of the “Betriebsverfassungsgesetz“ we were able to convince Ryanair of agreeing to a CLA for co-determination. Through his initiative, Minister of labour Hubertus Heil, has closed the loophole that some airlines have been using in the past. We remain hopeful that other airlines, such as Germania and Aerologic, will now come to the negotiating table to establish a social partnership with VC“, Locher noted.