Court slams easyJet over UK terms for French staff

[TheWanderer]

Court slams easyJet over UK terms for French staff (http://uk.finance.yahoo.com/news/court-slams-easyjet-over-uk-terms-for-french-staff-reuters_molt-dcf81cc62b28.html?x=0)

John Irish, 16:15, Friday 9 April 2010
CRETEIL, France (Reuters) - British budget airline easyJet was ordered to pay more than 1.5 million euros (1.31 million pounds) after a French court ruled it broke labour laws, setting a precedent for future disputes in the low-cost sector.
The case centred around 170 staff who worked at Orly airport in Paris between 2003 and 2006 and were hired under British contracts.
The prosecutor's office had said the company avoided paying millions of euros in French tax and charges by using more favourable British legislation.
The court ruled Friday easyJet would have to pay 1.42 million euros to job authorities, a 150,000-euro fine and 40,000 euros to two unions.
The verdict is likely to encourage prosecutors who argued that the French labour code is applicable to air transport companies which run operations on French soil, whether they are legally based in France or not.
"It has never been our intention to break the law ... it was at the time a hole in legislation and since then we employ under French contracts," Francois Bacchetta, country manager easyJet France told reporters.
The court rejected a claim for a further 8.4 million euros to be paid to unemployment insurance as social security agreements were in place between France and the United Kingdom.
EasyJet (LSE: EZJ.L (http://us.lrd.yahoo.com/_ylt=Aqf5.YSqP.UUqM0lArxooUDJk7J_;_ylu=X3oDMTB1dGpqMzZoBHBvc wMxBHNlYwNuZXdzYXJ0Ym9keQRzbGsDZXpqbA--/SIG=11cb9dh1t/**http%3A//uk.finance.yahoo.com/q%3Fs=EZJ.L) - news (http://us.lrd.yahoo.com/_ylt=AkH6dsjVf21c9MBCEnc.A2zJk7J_;_ylu=X3oDMTB1N2h1ZnF2BHBvc wMyBHNlYwNuZXdzYXJ0Ym9keQRzbGsDbmV3cw--/SIG=11eh7jili/**http%3A//uk.finance.yahoo.com/q/h%3Fs=EZJ.L)) has about 10 days to appeal the ruling, which covers the period of January 2005 to December 2006 before a law standardising the issue was introduced.
PRECEDENT SET
The prosecutor has said low-cost airlines cannot get around French law by using foreign contracts to cut salary costs and charges even if they are not legal entities in France.
Rachid Brihi, a lawyer for UNAC, an airline association which represents easyJet competitor Air France (Paris: FR0000031122 (http://us.lrd.yahoo.com/_ylt=Agy22jfZXCotl1WdZ_v2b2LJk7J_;_ylu=X3oDMTE2ZmcyOXVuBHBvc wMzBHNlYwNuZXdzYXJ0Ym9keQRzbGsDZnIwMDAwMDMxMTIy/SIG=11cbr2spr/**http%3A//uk.finance.yahoo.com/q%3Fs=AF.PA) - news (http://us.lrd.yahoo.com/_ylt=AkTzx8DCHK4jJcOf4O84BITJk7J_;_ylu=X3oDMTB1N2FvM2w0BHBvc wM0BHNlYwNuZXdzYXJ0Ym9keQRzbGsDbmV3cw--/SIG=11ef402ci/**http%3A//uk.finance.yahoo.com/q/h%3Fs=AF.PA)) among others and which is associated as a civil party to the case, said the verdict was the first of its type in a French court and he hoped it would lead to more penalties against airlines not respecting labour laws.
He said two French unions, including UNAC, have filed a complaint in southern France against Ryanair (Dublin: RY4.IR (http://us.lrd.yahoo.com/_ylt=AnZdazU6Phsp18AEJAmQ1X7Jk7J_;_ylu=X3oDMTB2NmxwYW5wBHBvc wM1BHNlYwNuZXdzYXJ0Ym9keQRzbGsDcnk0aXI-/SIG=11dssbiqc/**http%3A//uk.finance.yahoo.com/q%3Fs=RY4.IR) - news (http://us.lrd.yahoo.com/_ylt=AgscjjHNVzc8qqXg_R.iApDJk7J_;_ylu=X3oDMTB1ZWs2MTYzBHBvc wM2BHNlYwNuZXdzYXJ0Ym9keQRzbGsDbmV3cw--/SIG=11ffptkq6/**http%3A//uk.finance.yahoo.com/q/h%3Fs=RY4.IR)) over a similar case related to the Irish carrier's base in Marseilles.
(Additional reporting by Lucien Libert; Editing by Jon Loades-Carter)

[Brakes to Park]

What's this got to do with Terms and Endearment?

[captplaystation]

Quite a lot if you are based in France working for a UK (or Irish) loco.

Well, for sure Ryanair will be in the merde over this too, bye bye MRS base, and Beauvais may as well forget ever becoming one.

Hope Easy win their appeal, if they actually choose to submit one, as it seems the period under discussion wasn't covered by this law, BUT . . . as this will bring 1.5million € into the French public funding mitts, what odds would you give on a good outcome :hmm:

The more global potential outcome of all this, will come to pass if other countries see the opportunity to make some loot here, and lets face it the majority of European countries have a fairly grim shortfall in public funds.

At this point the Ryanair business model will need to be seriously rehashed, as it is based on employing many many aircrew in the most cheapskate country possible (Ireland) with enormous savings realised in social charges/taxes.

Unfortunately the losers in this will principally be the employees, as for every 1€ extra Mick has to pay for French/Spanish/Italian (or wherever) in increased charges vs Ireland, he will be paying the crew 1€ less.

So your Q what has this to do with Terms and Endearment ? for all European based staff working for the biggest loco this is a potentially VERY big hit :=

[Caudillo]

I wonder what this will mean for the Lyon base? Plus ca change.

[captplaystation]

I understood that Easy were now complying with the rules anyhow, maybe only for CC and groundstaff, I would suspect that the costs associated with having drivers based in France on a French contract will result in this remaining (as it is now ?) a "night-stop";) rather than a base.
Of course with so many "contractors" :hmm: perhaps Mick will find a way to avoid (NOT evade := ) the punitive (in comparison to Ireland) regimes, well time will tell, but when govts see the potential to make money, THEY may prevail, and MOL may be forced to defer to their rules if he wants a base in their country.

[flyhelico]

France will be a model.Other countries will follow same path.
"if you want to fly here, you pay your taxes here, and you pay to your employees a salary".

finish the p2f schemes...

[superced]

capt bidule. we are doing what we want in our own country. if you don't follow the rules. get out .....

[Doug the Head]

Excellent news, it's time to level the playing field in Europe!

[Doug the Head]

Let's see: a former state-owned monopolist screwing it's customers but treating it's staff like kings and queens, versus a shark-like capitalist company which screws it's own employees yet which gives tremendous value to it's customers.

We all (including governments through taxes) need to earn money in order to live and pay for things, whilst as consumers we all want a fair deal.

Don't you agree that there has to be a middle way somewhere?

[dusk2dawn]

I think I missed the end of the story - did EZY appeal?

[Mimiben]

A bit ironic from the french considering they invented the EEC for their own benefit to get money from other countries to give to thier farmers to do nothing .

It is even more ironic when you know that la PAC mainly benefits to the royal family in the UK as they are the biggest farmer, and even better because they give back FA to their loyal subjects. :ok:

[Permafrost_ATPL]

A bit ironic from the french considering they invented the EEC for their own benefit to get money from other countries to give to thier farmers to do nothing .

It must be why the original organisation was called the European Coal And Steel Community.

This is nepotism in it's purest form

Nepotism is favouring families and close friends. It comes from the Latin word for "nephew".

Keep going pressman, you sound well informed :D

[turbine100]

If Ryanair still has a base in France, do pilots or employees have to now pay French taxes instead of Irish?

[Permafrost_ATPL]

been reading Wiki have you

Nope, 6 years of Latin I'm afraid

Everyone knows what nepotism means and it has a much wider implication than just family and friends in todays society

Yes I agree, it is misused often.

:p

[Damianik]

As an Italian i must certify that Nepotism is what permafrost says. I have some experience with it constantly!!!
D

[dusk2dawn]

I think I missed the end of the story - did EZY appeal?