September 14, 2017 / 10:14 AM / 10 months ago

Ryanair says ECJ ruling won't add 'one cent' to labor costs

BERLIN (Reuters) - Ryanair on Thursday said a ruling by the European Court of Justice that air crew can bring proceedings before courts in the place where they perform their duties would not impact its cost base.

Ryanair CEO Michael O'Leary poses following a news conference in Rome, Italy, June 27, 2017. REUTERS/Alessandro Bianchi

Cabin crew based at the Irish carrier’s Charleroi airport base in Belgium challenged Ryanair in a local court, but Ryanair argued that their Irish contracts should be governed by Irish courts. Ryanair employs a large number of staff working in Continental Europe under Irish contracts.

The court ruled crew “have the option of bringing proceedings before courts of the place where they perform the essential part of their duties.”

Ryanair Chief Executive Michael O’Leary told journalists that the ruling means local courts would have more oversight, but that it would not change their contracts.

“Our contracts comply fully with EU employment law. We expect no change to staffing agreements, contracts or labor costs. This won’t change Ryanair’s cost base by one cent,” he said.

Reporting by Victoria Bryan and Caroline Copley; writing by Conor Humphries; editing by Jason Neely

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