1. 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

2. 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

3. 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

4. Some national legislations 1. 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

5. 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. Flight crew Bogus self-employment Bogus self-employment Based in foreign country (EU and non-EU) Based in foreign country (EU and non-EU) ‘pay to fly’ ‘pay to fly’ 2. Cabin crew Agency work Agency work Seasonal work, precariousness Seasonal work, precariousness

6. Specific case of Ryanair 1. At least 220 self-employed pilots working for Ryanair in Irlande 2. Several court cases by former employees against Ryanair: a) Ruling in Charleroi in 2013 (5 cabin crew claiming € 20,000 each): Crewlink is condemned. Crewlink appealed; b) 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; c) 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.

7. Specific case of Norwegian Long-haul operations launched in May 2013 operated by Norwegian Long Haul (NLH) 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) 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) Flight crew are being hired through an agency in Singapore and cabin crew in Thailand (to be confirmed)

8. Where are the loopholes? 1. There is a single European market, but there is no uniform social legislation 2. There is a lack of EU social legislation 3. 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) 4. Different taxes and social security systems in the EU Member States 5. Open skies are creating additional problems

9. What are the ETF alternatives? 1. 1. Trade unions must be recognized in all companies in all countries where they employ personnel and must be able to negotiate collective agreements; 2. Adoption of national social decrees (as in France) 3. Adoption of an ‘European social decree’ (labour legislation of country of home base applies) 4. Revision of the Regulation on common rules for the operation of air services to make binding the application of the national social legislation 5. 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 6. Improvement of social security coordination (shortening the 10 years transitional period and clarify in case of multiple bases)

10. www.etf-europe.org