Ryanair reaches first union deal with pilots

Bloomberg

Ryanair Holdings Plc recognised the union representing its UK pilots, reaching its first formal labour agreement in the discount airline’s history.
The 600 UK pilots directly employed by the carrier will be represented by the British Airlines’ Pilots Association, Ryanair said in a statement. All 15 of its bases in the market—the company’s biggest—have also voted to accept management’s offer to lift pay by 20 percent.
The deal marks progress in Ryanair’s effort to quell labour unrest and improve relations with pilots who threatened to strike in 2017 to gain union recognition. Under pressure, the company reversed its anti-union stance, but talks with some pilot groups, including in Ireland, have moved slowly. The UK accounts for about a quarter of the Dublin-based airline’s pilots and aircraft.
The deal shows “how serious Ryanair is about working constructively with unions that are willing to work constructively with us,” Chief People Officer Eddie Wilson said.
He warned unions in other markets to “stop wasting time and act quickly” on its proposals. The airline is meeting with labour groups in markets including Ireland, Italy, Belgium, Germany and Spain.
The progress in the UK is somewhat offset by “concerns that Ryanair is heading to a showdown” with its Irish pilots, who appear to want to wrap the pay deal into a wider negotiation of working conditions, Mark Simpson, an analyst in Dublin, said.
The move pared the company’s gains this year to 10 percent, lowering its market value to $24.3 billion. In the UK, Balpa will open elections for five representatives who will lead negotiations on pay, hours and rosters, while a separate advisory group will be elected to represent crew employed as contractors, the union said.
“Given Ryanair’s previous hostility towards unions, today’s agreement is an historic one,” Balpa General Secretary Brian Strutton said. “While we were initially skeptical about Ryanair’s sincerity in offering recognition to us and other unions, our conversations and meetings with them have shown that they are genuine in wanting a constructive trade-union relationship.”