Court slams easyJet over UK terms for French staff
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Court slams easyJet over UK terms for French staff
Court slams easyJet over UK terms for French staff
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 - news) 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 - news) 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 - news) over a similar case related to the Irish carrier's base in Marseilles.
(Additional reporting by Lucien Libert; Editing by Jon Loades-Carter)
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 - news) 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 - news) 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 - news) over a similar case related to the Irish carrier's base in Marseilles.
(Additional reporting by Lucien Libert; Editing by Jon Loades-Carter)
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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
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
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
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
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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" 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.
rather than a base.Of course with so many "contractors"
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.
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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...
"if you want to fly here, you pay your taxes here, and you pay to your employees a salary".
finish the p2f schemes...
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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?
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?
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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 .
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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 .
This is nepotism in it's purest form
Keep going pressman, you sound well informed
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been reading Wiki have you
Everyone knows what nepotism means and it has a much wider implication than just family and friends in todays society
Last edited by Permafrost_ATPL; 13th Dec 2010 at 12:36.
