Ryanair cabin crew agree to temporary pay cut to keep jobs

Image copyright
Getty Images

Ryanair cabin crew are to accept a temporary pay cut over four years to keep their jobs.

The development comes a week after Ryanair pilots voted for a pay cut to save hundreds of jobs.

Airlines throughout the world have been struggling to remain viable after coronavirus travel restrictions grounded many flights.

In the US, United Airlines said on Wednesday it was taking action to reduce its workforce.

In May, Ryanair said it was set to cut 3,000 jobs across Europe, or 15% of its workforce.

But on Wednesday, the airline said it had cut a deal with the Unite union so that UK cabin crew jobs would be safeguarded.

‘Constructive’ approach

Ryanair did not put a figure on how many cabin crew jobs had been under threat.

The airline’s chief executive, Eddie Wilson, said the deal would save hundreds of cabin crew jobs in the UK.

“The result of the negotiations with Unite demonstrates the commitment from our cabin crew and their unions in the UK to work with Ryanair as we work our way through this crisis over the next number of years,” Mr Wilson said.

The Unite union said the deal would ultimately safeguard a total of 1,800 UK cabin crew jobs.

Unite assistant general secretary Diana Holland said: “Unite has been contending with an incredibly difficult set of circumstances in the aviation sector.

“The agreement with Ryanair shows that the company has taken a more constructive and less damaging approach to dealing with the issues than many of its competitor airlines.”

Jobs deal

Unite said cabin crew had voted to accept a temporary pay cut of 5% for the lowest paid, 7.5% for others, and 10% for the highest paid.

Pay cuts will be reversed in two tranches in 2023 and 2024, or earlier if Ryanair returns to pre-Covid-19 levels of business sooner, Unite said.

Last week Balpa said Ryanair pilots had voted to accept temporary pay cuts after the May announcement that 330 pilot jobs could go.

Pilots said they would accept a 20% pay cut to save 260 of those jobs, with most of the rest “linked to possible base closures”.

US hit

Airlines around the world have been struggling to keep up with costs while operating a severely limited number of flights.

On Wednesday, US giant United Airlines warned 36,000 staff that they could face furloughing or job cuts starting from 1 October.

The airline cannot make redundancies before then, under the terms of support it has received from the US government.

But it has said it expects travel demand to remain low for the foreseeable future.

The potential cuts would fall on US staff. The company employed about 96,000 people globally at the end of last year.

United Airlines said the final number of job cuts and people put on furlough remains up in the air. It is also seeking for people to retire voluntarily.

Source Article