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Ryanair Labor Strife Worsens as Irish Pilots Vote to Strike

Ryanair Labor Strife Deepens With Irish Pilots Voting to Strike

(Bloomberg) -- Ryanair Holdings Plc’s Irish pilots followed their U.K. colleagues in voting to strike over pay, putting more pressure on efforts to keep a lid on costs at Europe’s biggest discount carrier.

The Irish Airline Pilots’ Association said in a statement Friday that 94% of directly employed Ryanair pilots backed industrial action and that it will issue dates for a walkout early next week unless the Dublin-based airline makes a “substantive” wage offer by Monday.

“Pilots are simply seeking pay levels that are common and competitive in the commercial airline sector,” said Ian McDonnell, assistant general secretary of umbrella union Fórsa. The company “seems either unwilling or unable to negotiate in a professional and constructive manner.”

Ryanair said fewer than half its Irish pilots are in the union and that the action has “no valid mandate.”

The move comes as Ryanair struggles with a slew of pay demands after recognizing unions two years ago, with U.K. pilots set to walk out from Aug. 22. Labor relations have further deteriorated after Chief Executive Officer Michael O’Leary said hundreds of jobs must go to cope with a possible no-deal Brexit and a shortfall in jet deliveries after the grounding of Boeing Co.’s 737 Max.

Shares Fall

While Ryanair is facing claims from other employee groups across its network, strikes by pilots represent a worst-case scenario since cockpit crews have a greater ability to keep planes on the tarmac.

Shares of Ryanair fell as much as 3.8% in Dublin trading. The stock slumped close to 30% in 2018 amid widespread labor unrest after the company first recognized unions.

The Irish strike call is backed by less than one quarter of pilots, Ryanair said, since fewer than half of crew are members of the Ialpa union and, of those, below 60% participated in the ballot.

The pay increase being sought comes on top of an earlier 20% award that’s taken the salary for a senior captain to more than 200,000 euros ($224,000) for a five days on, four off work pattern, the company said. This would come at a time when profits are falling amid higher fuel and payroll costs. The union is also breaking a commitment to continue in the mediation process, it said.

Here’s a run-down of the discount giant’s labor challenges on other countries:

U.K.

Members of the British Airline Pilots’ Association plan to strike for two days from Aug. 22, followed by a three-day action in September. Four-fifths of votes backed a walkout on a 72% turnout, though Ryanair said the numbers represent a minority of U.K. crews. Britain is the carrier’s biggest market and the action will have more impact “than any other the company has weathered,” Sanford C. Bernstein analyst Daniel Roeska said in a note. The hit on profit depends on how long the dispute lasts and if the carrier has to pay compensation.

Portugal

Cabin-crew plan a five-day strike from Aug. 21. The SNPVAC union says Ryanair is failing to comply with rules including the payment of holiday and Christmas subsidies and the number of vacation days. The walkout also includes ground staff. The union has also said the carrier plans to shut its base in Faro.

Spain

Flight attendants will strike in September after Ryanair revealed it will close two bases in the Canary Islands and consider shuttering one in Girona, the SITCPLA union said. It hasn’t set dates for a walkout and it’s not clear what procedures need to be followed.

Austria

Staff at the recently acquired Laudamotion unit have been told 30 pilot jobs are at risk if they don’t agree to savings and new flight rosters. Labor representatives say the proposals include enforced vacation and longer hours and violate Austrian labor law. They’re seeking talks with management and have rejected an Aug. 14 ultimatum for a deal.

To contact the reporters on this story: Christopher Jasper in London at cjasper@bloomberg.net;Peter Flanagan in Dublin at pflanagan23@bloomberg.net

To contact the editor responsible for this story: Tara Patel at tpatel2@bloomberg.net

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