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Ryanair CEO Michael O'Leary Nick Ansell/PA Archive/PA Images

Ryanair fell foul of Europe's top court today - here's what you need to know

The decision may have a big impact on future labour disputes at the airline.

RYANAIR CAME OUT the wrong side of a European Court of Justice (ECJ) ruling today, which could have a big impact on how it handles future labour disputes with workers outside Ireland.

The ECJ’s judgement, published this morning, has determined that the airline’s crew members have the option of bringing industrial relations proceedings before the courts in the countries in which they are based.

It suggests the airline cannot automatically refer disputes for staff based overseas to the Irish courts. Several unions have welcomed the decision as one that would stop Ryanair skirting local labour laws in other European countries.

With that in mind, here’s what you need to know about the ruling and how it could affect future worker disputes at Ryanair.

What’s the dispute about?

This story dates back to 2011, when six former air stewards based at an airport in Belgium lodged complaints against Ryanair and Crewlink, an Irish company that employs cabin crew on behalf of the airline.

Ryanair typically puts direct and agency staff on Irish contracts, instead of agreements for each of the regions in which the workers are based.

The contracts signed by the workers at Brussels’ Charleroi Airport said their duties were carried out on board Irish-registered Ryanair aircraft – but their ‘home base’ was in Belgium.

The ex-employees wanted a Belgian court to hear their case and to have their contracts recognised under local employment law. They argued that EU regulation required the weaker contracting party – in this case the worker – to be provided with adequate protection.

They accused Ryanair of applying provisions in Irish law which are less favourable than Belgian law, even though the workers had no real connection with Ireland.

Berlin-Schoenefeld Airport Bernd Settnik / DPA/PA Images Bernd Settnik / DPA/PA Images / DPA/PA Images

Ryanair argued that the workers’ contracts should be viewed as legitimately Irish because the employees benefited from local social security and their salaries were paid into bank accounts opened in Ireland.

In 2013, a Belgian labour court ruled that it did not have the jurisdiction to hear the case, so it was referred to the ECJ after an appeal from the workers.

The European court was then tasked with determining whether or not the workers’ claims can be heard in Belgian courts. That’s what today’s judgement decided.

What did the ECJ say?

The ECJ said today that the Belgian court does in fact have the jurisdiction to hear the workers’ case, stating:

In disputes relating to their employment contracts, air crew members have the option of bringing proceedings before the courts of the place where they perform the essential part of their duties vis-à-vis their employer.

It’s up to the national court to decide whether their place of work is Ireland or Belgium. The court pointed out that European rules concerning jurisdiction are aimed at protecting the weaker party in a dispute.

It said those rules permit an employee to sue their employer before the courts which they regard as closest to their interests. That could be either the place where they work or where the company is domiciled.

Head of Ryanair Michael O'Leary speaks on Air Berlin Ryanair CEO Michael O'Leary Bernd von Jutrczenka / DPA/PA Images Bernd von Jutrczenka / DPA/PA Images / DPA/PA Images

The court said the ‘home base’ clause alone didn’t determine in which jurisdiction a case can be heard. Instead, a number of factors must be considered, like where the employee receives their instructions and where they return after completing their tasks.

It said the place of work where a member of staff carries out their duties cannot be equated to the nationality of the aircraft.

What will happen next?

Despite the seemingly negative finding, Ryanair welcomed today’s ruling and said it didn’t plan to change its approach for hiring workers using Irish contracts.

“This ECJ decision does not change the status quo of Irish contracts of employment for Ryanair crew based across Europe,” the airline said in a statement. ”Ryanair will continue to employ its crew on Irish contracts of employment.”

Nevertheless, several European unions seized on the decision as a defeat for the airline and a “victory for workers’ rights”.

European Transport Workers’ Federation general secretary Eduardo Chagas said: “I am confident that this ruling will empower the workers in all airlines that want to circumvent national law and pick the jurisdiction that best serves their interests.

The home base from which you work is the obvious criterion when defending the legitimate labour rights of mobile staff inside the EU.

Greg Ennis, organiser of Siptu’s transport, energy, aviation and construction division, said the ruling is “a significant milestone in the journey to achieving better terms and conditions for all Ryanair employees right across Europe”.

“This is a vital step for those who need, in particular, to seek redress in matters relating to individual contracts of employment. It does away with what has been the attempt by the management of Ryanair to use a flag of convenience approach to undermine workers’ rights,” Ennis stated.

Ryanair boss Michael O’Leary told Fora in April that the airline expected to appeal the ruling after acknowledging that the low-cost carrier was likely to come out the wrong side of the ECJ’s decision.

We’ll respect the ruling. We’ll appeal it, but we have to respect the ruling. It may well be that people at our bases across Europe may have local employment contracts.

However, he added that the airline has had local employment contracts with workers in the UK for many years.

He said this measure “hasn’t led to unionisation” of cabin crew or pilots there, something the airline boss – who famously called RTÉ a “rat-infested North Korean union shop” – is keen to avoid.

He also issued a warning to any workers who might try to form unions if the Belgian workers are victorious.

“We don’t believe (the ECJ ruling) will lead to unionisation because the first people up over the barricade looking for unions will find their base either frozen or closed,” he said.

“As we did in Copenhagen when we were blockaded by the SAS unions, we will move the aircraft out of there.”

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    Mute Sam Harms
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    Sep 18th 2020, 6:15 PM

    If weddings can happen this weekend restaurants should have been allowed to stay open until Monday so that they don’t waste the stock they would have bought in for the weekend which will now just be more money lost.

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    Mute ihcalaM
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    Sep 18th 2020, 6:22 PM

    @Sam Harms: Good point, didn’t think about that; presumably they didn’t want a huge rush on restaurants before they’re closed for the three weeks though which was probably the reason for the sudden announcement.

    27
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    Mute Claude Saulnier
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    Sep 18th 2020, 6:47 PM

    @Sam Harms: it wouldn’t be good for deliveroo and uber eats.

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    Mute Mary Ann Sweeney
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    Sep 18th 2020, 6:15 PM

    Does the virus not spread at the weekends? What’s the difference between now and Monday?

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    Mute Claude Saulnier
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    Sep 18th 2020, 6:45 PM

    @Mary Ann Sweeney: 2 days. Can’t answer the first one.

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    Mute PeeedOff
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    Sep 18th 2020, 7:36 PM

    @Mary Ann Sweeney: This has to be the most intelligent virus on the planet, it wont get you in 105 mins while eating a meal, it only appears if 26 attend a wedding. Or if 7 are in the house. You can also fly with over 100 people on an aircraft. You can take a ferry with several hindered people to another country, yep apparently it won’t get ya there either.

    Over 200 In one meat plant countless more in others and yet they operate as if nothing is happening. A few hundred Active cases in Dublin and yep yer locked up or down whichever way its the same thing. Oh and yesterday house parties were the cause, but today without any evidence whatsoever its restaurants and pubs.

    Definitely the smartest virus ever.

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    Mute Decko49
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    Sep 19th 2020, 9:26 AM

    @PeeedOff: Its just a pity you’re not as smart as it.

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    Mute Decko49
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    Sep 19th 2020, 9:27 AM

    @PeeedOff: Has any member of your family or any friends died from the virus?

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    Mute PeeedOff
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    Sep 19th 2020, 9:53 AM

    @Decko49: Yes, do you want their Names and address’s. Well I’ll give you their location. The Cemetery.

    Any other personal info you require. Or is the Cynical interrogation finished now.

    And yes, this is now a Casedemic, which this Government is now bending over backwards to destroy society in Ireland.

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    Mute Jeanette Dunne
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    Sep 18th 2020, 6:23 PM

    another blow to anyone getting married in the next few days up there, I’ve resigned to the fact the wedding we planned for June 2020 will never be.thinking we were safe pushing it to august, nope, definitely next May right?? Nope probably not!

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    Mute Aaron
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    Sep 18th 2020, 6:43 PM

    @Jeanette Dunne: Just push it to late next year? Might have a better chance then

    9
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    Mute SB
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    Sep 18th 2020, 6:25 PM

    Covid 19 is such an intelligent virus it knows the difference between 50 at weekends and 25 from Monday

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    Mute Peter Bell
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    Sep 18th 2020, 6:23 PM

    Sad times we are living in…..

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    Mute D4 Observer
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    Sep 18th 2020, 6:20 PM

    Should have let the communions go ahead too.

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    Mute nelliekel
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    Sep 18th 2020, 6:34 PM

    Wgat about the poor children were to make communion tmw been told day before its cancelled

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    Mute Rachael Baldwin
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    Sep 18th 2020, 9:29 PM

    @nelliekel: Completely agree! My nephew and some of my friends kids were due to have theirs tomorrow too and to find out less than 24 hours before is disgusting. Don’t understand how weddings can go ahead and communions can’t. Furious for the parents and kids.

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    Mute Pauline Gallagher
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    Sep 18th 2020, 11:59 PM

    @Rachael Baldwin: Pointless day anyway.

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    Mute William Kelly
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    Sep 18th 2020, 7:11 PM

    Ah shure, just split the hooley into 2 x25 phases. Lots of wedding feasts go over 2 days or more.
    Could be the way forward, his & hers maybe.

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