Labour ruling against Ryanair adds fuel to EU directive debate

A COURT ruling on Monday, ordering Ryanair to pay compensation to three Belgian flight attendants, is being used by both opponents and supporters of the controversial EU draft Services Directive.

Ryanair, which may appeal the verdict, claimed that because the three Belgian cabin staff had signed contracts in Dublin based on Irish law, then they were entitled to fire them under Irish legislation.

The three, Steve Dewilde, Anne Legros and Magali Warbecq, were fired in April 2002 after a year working for Ryanair, "because they did not match the profile", according to reports.

However the tribunal, sitting in Charleroi, said the three were subject to Belgian labour law because they flew into and out of Belgium.

Under Belgian regulations the maximum trial period is six months, after which workers have full legal protection and rights.

They ruled that the Irish low-cost airline must pay compensation to the workers along with other payments they claimed they were owed.

Dublin Labour MEP Proinsias de Rossa said the verdict should be a warning of how the proposed Services Directive could be used to the disadvantage of workers and consumers.

"This Ryanair result is indicative of the minefield that the Services Directive would open up and shows there is a willingness among certain areas of business to exploit whatever is there to the detriment of workers and consumers," said Mr de Rossa.

Under current EU legislation the Posted Workers Directive workers are entitled to the conditions and legal protection of the country where they are working.

The draft directive is based on the country of origin principle, where the conditions and rules of the country in which a company is set up would apply, irrespective of where it was operating in the EU.

Commissioner Charlie McCreevy has said he is willing to amend the text to make it clear that conditions and standards for workers will not be affected in any way. "I will not stand over a directive that allows social dumping. The text will have to be watertight on this point," he said.

His press officer Catherine Bunyan, commenting on the Ryanair decision, said the proposed Services Directive will not interfere in any way with the Posted Workers legislation.

However feelings are running high about the draft and Mr McCreevy is under pressure, especially from the French, to withdraw it.

Mr McCreevy's position has been so far supported by commission president Jose Manuel Barroso.

EU leaders meeting in Brussels last night and today will discuss the issue.

The British and Irish governments firmly support opening up the market for services, which they say will create 600,000 jobs.