Ryanair 2012 Annual Report Download - page 102

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Ryanair‘s employees earn productivity-based incentive payments, including a sales bonus 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
2012 fiscal year, such productivity-based incentive payments accounted for approximately 47% 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 which variously fall due for
negotiation between 2013 and 2015. In March 2012, Ryanair agreed to increase the pay of pilots and cabin crew
in accordance with the terms of individual base agreements. The remaining employees who were not covered by
base agreements had their salary frozen for a period of 12 months. Ryanair‘s pilots are currently subject to IAA-
approved limits of 100 flight-hours per 28-day cycle and 900 flight-hours per fiscal year. For the 2012 fiscal
year, the average flight-hours for Ryanair‘s pilots amounted to approximately 70 hours per month and
approximately 839 hours for the complete year, a 2% increase on the previous fiscal 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 meets regularly 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 had 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 but BALPA decided not to proceed with an application at that time. The option
to apply for a ballot remains open to BALPA and if it were to seek and be successful in such a ballot, it would
be able 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.‖