New EU rules could affect Ryanair

http://www.irishtimes.com/newspaper/breaking/2012/0418/breaking38.html

MEPs have voted to close a legal loophole that allows low-cost airlines to avoid paying social security contributions in some of the countries in which they operate.
Under new rules adopted today by the European Parliament in Strasbourg, cabin crew and pilots will be subject to the social security rules of the country in which they routinely work rather than in the country in which their employing airline is based.
The new rules confirm the concept of a "home base" as the place from which a flight crew member carries out the majority of their work. Such home bases will be used to establish which country's social security system is used by airline staff in the future.

This will adversely affect the costs of Ryanair (amongst other airlines) and by way of consequence, the cost of the tickets ... But let's trust Michael O'Leary, he'll find a solution !
Those new rules are for newly hired only (from july this year) - for the others, there is a ten-year transition period.

Ryanair staff costs may increase dramatically after the airline heard it will be forced to pay social welfare contributions for employees at bases around Europe.
Currently, 8,500 cabin crew and pilots have Irish work contracts irrespective of where they reside, on the basis that the low-cost airline is registered in Dublin.
Ireland’s social welfare contributions for employers and employees are one of the lowest in the EU — but so is the country’s spending on social protection.

However, under new European Parliament legislation, airlines will have to pay their staff’s social contributions based on the country staff are located in — the base from which they fly and to which they return after their work shift.

Ryanair criticised the change. Spokesman Peter McNamara said: "This is another example of how the EU introduces regulations which serve no purpose other than to increase the cost of air travel and reduce competitiveness between EU states."

The new rules have been agreed by the EU member states, and are expected to be adopted by June.


Read more: http://www.irishexaminer.com/ireland/ryanair-faces-social-welfare-costs-rise-191031.html#ixzz1saAOA6xZ