Ryanair 2010 Annual Report Download - page 108

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Ryanair’s employees earn productivity-based incentive payments, including commissions for onboard
sales for flight attendants and payments based on the number of hours or sectors flown by pilots and flight
attendants (within limits set by industry standards or regulations fixing maximum working hours). During the
2010 fiscal year, such productivity-based incentive payments accounted for approximately 39% of an average
flight attendant’s total earnings and approximately 37% of the typical pilot’s compensation. Pilots at all Ryanair
bases are covered by four-year agreements on pay, allowances and rosters. In November and December 2009,
negotiations on new employee pay arrangements concluded in a one-year pay freeze and the extension of all
existing agreements by one year at all of Ryanair’s bases. Ryanair’s pilots are currently subject to IAA-approved
limits of 100 flight-hours per 28-day cycle, 300 flight-hours every three months and 900 flight-hours per fiscal
year. For the 2010 fiscal year, the average flight-hours for Ryanair’s pilots amounted to approximately 64 hours
per full working month and approximately 758 hours for the complete year, almost identical to the previous
year. Were more stringent regulations on flight hours to be adopted, Ryanair’s flight personnel could experience
a reduction in their total pay due to lower compensation for the number of hours or sectors flown and Ryanair
could be required to hire additional flight personnel.
Ryanair considers its relations with its employees to be good. Ryanair currently negotiates with groups
of employees, including its pilots, through “Employee Representation Committees” (“ERCs”) regarding pay,
work practices and conditions of employment, including conducting formal negotiations with these internal
collective bargaining units. Ryanair’s senior management has quarterly meetings with the different ERCs to
discuss all aspects of the business and those issues that specifically relate to each relevant employee group.
On June 19, 2009, BALPA (the U.K. pilots union) made a request for voluntary recognition under
applicable U.K. legislation, which Ryanair rejected. BALPA now has the option of applying to the U.K.’s
Central Arbitration Committee (CAC) to organize a vote on union recognition by Ryanair’s pilots in relevant
bargaining units, as determined by the CAC. If BALPA were successful in such a ballot initiative, this would
allow it to represent the U.K. pilots in negotiations over salaries and working conditions.
Ryanair Holdings’ shareholders have approved a number of share option plans for employees and
directors. Ryanair Holdings has also issued share options to certain of its senior managers. For details of all
outstanding share options, see “Item 10. Additional Information––Options to Purchase Securities from
Registrant or Subsidiaries.”