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ATYPICAL FORMS OF AIRCREW EMPLOYMENT IN THE EUROPEAN AVIATION INDUSTRY WITH A FOCUS ON SELF-EMPLOYMENT IRIS – Ghent University Yves Jorens, Dirk Gillis, Lien Valcke, Anneline Devolder Funded by the European Commission

ATYPICAL FORMS OF AIRCREW EMPLOYMENT IN THE … GILLIS... · 2015. 5. 8. · Objectives of the study • "Pilot" study of forms of a-typical employment in civil aviation sector •

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Page 1: ATYPICAL FORMS OF AIRCREW EMPLOYMENT IN THE … GILLIS... · 2015. 5. 8. · Objectives of the study • "Pilot" study of forms of a-typical employment in civil aviation sector •

ATYPICAL FORMS OF AIRCREW EMPLOYMENT IN THE EUROPEAN AVIATION INDUSTRY WITH A FOCUS ON SELF-EMPLOYMENT

IRIS – Ghent University Yves Jorens, Dirk Gillis, Lien Valcke, Anneline Devolder

Funded by the European Commission

Page 2: ATYPICAL FORMS OF AIRCREW EMPLOYMENT IN THE … GILLIS... · 2015. 5. 8. · Objectives of the study • "Pilot" study of forms of a-typical employment in civil aviation sector •

Objectives of the study •  "Pilot" study of forms of a-typical employment in civil

aviation sector •  Desktop research •  Comparative research in 11 countries on different aspects of

atypical employment (+ interviews) •  Analysis of data from survey •  Legal evaluation •  Recommendations

Page 3: ATYPICAL FORMS OF AIRCREW EMPLOYMENT IN THE … GILLIS... · 2015. 5. 8. · Objectives of the study • "Pilot" study of forms of a-typical employment in civil aviation sector •

Survey-respondents-general data •  Final amount

= 6633 respondents

•  With 79

different nationalities

Page 4: ATYPICAL FORMS OF AIRCREW EMPLOYMENT IN THE … GILLIS... · 2015. 5. 8. · Objectives of the study • "Pilot" study of forms of a-typical employment in civil aviation sector •

Types of airlines

Low-­‐fare  airline  22%  

Regional  airline  8%  

Charter  airline  7%  

Cargo  airline  7%  Other  

6%  

Business    avia<on  

4%  

Missing  1%  

Network  airline  45%  

Page 5: ATYPICAL FORMS OF AIRCREW EMPLOYMENT IN THE … GILLIS... · 2015. 5. 8. · Objectives of the study • "Pilot" study of forms of a-typical employment in civil aviation sector •

Airlines worked for Top 25

650  627  565  

429  

223  193  190  124  112  103  102  101  101  75   73   70   69   58   55   54   54   53   49   44   43  

RyanAir  

Air  F

rance  

KLM  

SAS  

EasyJet  

Norwegian  

Lu9h

ansa  

Cargolux  

TUI  

AerLingus  

Transavia  

Alita

lia  

BrusselsA

irlin

Wizz

 BriEshAirw

ayAirBerlin  

Swissair  

HOP  

CathayPacific  

DHL  

Flybe  

West  a

tlanE

c  Tyrolean  

CroaEa

 Iceland  air  

Total  N=  5400  

Page 6: ATYPICAL FORMS OF AIRCREW EMPLOYMENT IN THE … GILLIS... · 2015. 5. 8. · Objectives of the study • "Pilot" study of forms of a-typical employment in civil aviation sector •

Types of employment

5%  

79%  

5%  

4%  5%  

2%  

Missing  

I  have  an  employment  contract  with  the  airline  directly  

I  work  for  the  airline  as  a  self-­‐employed  worker  via  a  cooperaEon  agreement  concluded  with  the  airline  directly  I  work  for  the  airline  via  a  company  

I  work  for  the  airline  via  a  temporary  work  agency  with  which  I  have  an  employment  contract  

It  is  a  different  relaEonship  

Page 7: ATYPICAL FORMS OF AIRCREW EMPLOYMENT IN THE … GILLIS... · 2015. 5. 8. · Objectives of the study • "Pilot" study of forms of a-typical employment in civil aviation sector •

Direct vs. Atypical

!"##"$%&'(&

)"*+,-&./(&

0-12",34&56(&

N=5259  

Page 8: ATYPICAL FORMS OF AIRCREW EMPLOYMENT IN THE … GILLIS... · 2015. 5. 8. · Objectives of the study • "Pilot" study of forms of a-typical employment in civil aviation sector •

Overview of different types of contracts per type of airline

0  

500  

1000  

1500  

2000  

2500  

3000  

Network   Low-­‐fare   Charter   Regional   Cargo   Business   Other  

Direct   Temorary  agency   Self-­‐employed   Via  a  company   Different  

Page 9: ATYPICAL FORMS OF AIRCREW EMPLOYMENT IN THE … GILLIS... · 2015. 5. 8. · Objectives of the study • "Pilot" study of forms of a-typical employment in civil aviation sector •

Age per type of contract – General overview

Page 10: ATYPICAL FORMS OF AIRCREW EMPLOYMENT IN THE … GILLIS... · 2015. 5. 8. · Objectives of the study • "Pilot" study of forms of a-typical employment in civil aviation sector •

Experience per type of airline

Page 11: ATYPICAL FORMS OF AIRCREW EMPLOYMENT IN THE … GILLIS... · 2015. 5. 8. · Objectives of the study • "Pilot" study of forms of a-typical employment in civil aviation sector •

Atypical employment and (bogus) outsourcing in civil aviation

Typical employment relationship between airline and the crew

Page 12: ATYPICAL FORMS OF AIRCREW EMPLOYMENT IN THE … GILLIS... · 2015. 5. 8. · Objectives of the study • "Pilot" study of forms of a-typical employment in civil aviation sector •

Atypical employment and (bogus) outsourcing in civil aviation

Introduction of the intermediary

Page 13: ATYPICAL FORMS OF AIRCREW EMPLOYMENT IN THE … GILLIS... · 2015. 5. 8. · Objectives of the study • "Pilot" study of forms of a-typical employment in civil aviation sector •

Atypical employment and (bogus) outsourcing in civil aviation

Introduction of temporary work agency and an employment or recruitment agency – pilot self-employed

Page 14: ATYPICAL FORMS OF AIRCREW EMPLOYMENT IN THE … GILLIS... · 2015. 5. 8. · Objectives of the study • "Pilot" study of forms of a-typical employment in civil aviation sector •

Atypical employment and (bogus) outsourcing in civil aviation

Subcontracting with different home bases for different crew members

Page 15: ATYPICAL FORMS OF AIRCREW EMPLOYMENT IN THE … GILLIS... · 2015. 5. 8. · Objectives of the study • "Pilot" study of forms of a-typical employment in civil aviation sector •

Atypical employment and (bogus) outsourcing in civil aviation

Subcontracting with different home bases for different crew members; some home bases are not located within the EU

Page 16: ATYPICAL FORMS OF AIRCREW EMPLOYMENT IN THE … GILLIS... · 2015. 5. 8. · Objectives of the study • "Pilot" study of forms of a-typical employment in civil aviation sector •

UP TO THE FUTURE Where to fly to?

Page 17: ATYPICAL FORMS OF AIRCREW EMPLOYMENT IN THE … GILLIS... · 2015. 5. 8. · Objectives of the study • "Pilot" study of forms of a-typical employment in civil aviation sector •

Segregation of the labour market • Cabin crew: cost in EU: 100 → cost in Thailand: 65 →

cost in China: 35 → … • Officer at beginning of career

•  Earns a few thousand euro/month – some captains earn a few hundred thousand euro/year

•  More chance atypically employed

Page 18: ATYPICAL FORMS OF AIRCREW EMPLOYMENT IN THE … GILLIS... · 2015. 5. 8. · Objectives of the study • "Pilot" study of forms of a-typical employment in civil aviation sector •

Atypical and flexibility (1) • Atypical is not bogus (self-employed pilot) • Atypical is an answer to demands for flexibility from

(mainly) employers– especially Low Cost Airlines – and (to a much lesser extent) employees

• Real problem: social and fiscal engineering • Result of social and fiscal engineering: often results in

precarious employment and unfair competition • Social and fiscal engineering: often makes uses of

atypical forms of ‘employment’

Page 19: ATYPICAL FORMS OF AIRCREW EMPLOYMENT IN THE … GILLIS... · 2015. 5. 8. · Objectives of the study • "Pilot" study of forms of a-typical employment in civil aviation sector •

Atypical and flexibility (2) • Self-employed pilots possible?

•  Genuinely self-employment is different from bogus-self-employed and different answers are needed for both

•  Bogus SE remains hard to tackle in EU (MS competence) •  Legitimate outsourcing is different from bogus

subcontracting chains • Beware of the bogus employee!! (e.g. cabin crew member

from third country with little social protection and in precarious situation)

• Atypical employment can create a higher risk of “dependency” of the pilot towards the ‘client’ (airline). This can limit his/her ability to take independent safety decisions

Page 20: ATYPICAL FORMS OF AIRCREW EMPLOYMENT IN THE … GILLIS... · 2015. 5. 8. · Objectives of the study • "Pilot" study of forms of a-typical employment in civil aviation sector •

Looking to reduce costs • Shopping for social legislation? Playing field level?

Playing field = global! •  The search for a unique connecting factor: not an easy

task : different domains of law and rules apply

Page 21: ATYPICAL FORMS OF AIRCREW EMPLOYMENT IN THE … GILLIS... · 2015. 5. 8. · Objectives of the study • "Pilot" study of forms of a-typical employment in civil aviation sector •

Other issues to address • Safety issues: atypically employed crew member: higher

risk prioritizing economic aspects over safety aspects (but main factor = precariousness)

• Monitoring and enforcement issues: urgent need for multidisciplinary cross-border cooperation and information exchange between competent authorities and inspection services (cave: need for global cooperation and information exchange!) e.g. FTL

•  Management culture (abuse of precarious situations, etc.)

• Regulatory framework clearly not adapted to present day business models and practices !

•  (global) unfair competition •  FTL

Page 22: ATYPICAL FORMS OF AIRCREW EMPLOYMENT IN THE … GILLIS... · 2015. 5. 8. · Objectives of the study • "Pilot" study of forms of a-typical employment in civil aviation sector •

Solutions? • Enhanced regulation of of flight schools

and mandatory traineeship? • Unique connecting factor? • Enhanced enforcement of FTL and

safety regulations • An integrated (multidisciplinary)

approach ! • Common fight of all stakeholders

involved !

Page 23: ATYPICAL FORMS OF AIRCREW EMPLOYMENT IN THE … GILLIS... · 2015. 5. 8. · Objectives of the study • "Pilot" study of forms of a-typical employment in civil aviation sector •

CONCLUDING REMARK “We therefore call upon all stakeholders to act upon this clear warning and to not let the detrimental experiences of the maritime sector – resulting in hazardous safety issues, tax issues and sheer social dumping – be repeated in the civil aviation industry. In this respect, it’s minutes passed midnight.“ (Jorens, Gillis, Valcke, & De Coninck, 2015, S. XVII)”

Page 24: ATYPICAL FORMS OF AIRCREW EMPLOYMENT IN THE … GILLIS... · 2015. 5. 8. · Objectives of the study • "Pilot" study of forms of a-typical employment in civil aviation sector •

Thank you for your attention

For any questions you can contact: [email protected] [email protected] [email protected]