VIENNA (Reuters) – Austrian business and labour groups have struck a deal on a collective wage agreement at Ryanair’s
Lauda had said on Friday it was shutting down its Vienna base after failing to reach an agreement with the union on pay. The move would have involved the loss of around 370 jobs in Lauda.
“After long and difficult negotiations and repeated attempts by the WKO to bring about a compromise, a solution for a collective wage agreement was achieved on Wednesday night,” the Chamber of Commerce (WKO), which represents businesses in negotiations with unions, said in a statement.
Austria’s Vida union said the deal lasting until 2023 involved a gross monthly wage of 1,440 euros for flight attendants and 2,000 euros for co-pilots, but Lauda management and Ryanair have yet to give their approval.
“It is now up to Laudamotion and Ryanair to accept the Austrian social partners’ collective wage agreement and thereby save its employees’ jobs and its base at Vienna airport,” Vida said in a statement, using Lauda’s legal name, Laudamotion GmbH. The WKO and unions are referred to as social partners.
Ryanair Chief Executive Michael O’Leary had previously said that the group would close Lauda’s main hub in the Austrian capital and bring in Ryanair jets instead unless the staff agreed to a pay cut and a new labour agreement.
Vida had long refused to agree to Lauda’s proposals as it said they would hit some employees unacceptably hard, provoking criticism from some staff who said they wanted their jobs saved. Pilots in particular had opposed the union.
(Reporting by Francois Murphy; Editing by Kim Coghill and Sherry Jacob-Phillips)
