1. EESC – Social Dumping, 16/04/2015 Social Dumping The Cockpit Perspective EESC Hearing, 16/04/2015

2. EESC – Social Dumping, 16/04/2015 Shades of Unfair Competition Zero Hour Contracts

3. EESC – Social Dumping, 16/04/2015 http://www.bloomberg.com/news/articles/2015-02-12/budget-airlines-shop-the-world-for-cheaper-pilots

4. EESC – Social Dumping, 16/04/2015 http://brookfieldav.com/

5. EESC – Social Dumping, 16/04/2015 http://brookfieldav.com/ Postal Address: Brookfield Aviation International P.O. Box 279 Epsom, Surrey KT19 8YX England

6. EESC – Social Dumping, 16/04/2015

7. Does it matter? Pilots = safety professionals => in a safety critical industry + cabin crew too! Not employed directly by their airline, but: Via temporary agencies As (bogus) self employed (limited liability comp.) Zero-hour contracts (no flight = no pay) P2F = pilots Pay to Fly Link broken: staff + airline

8. EESC – Social Dumping, 16/04/2015 Impact on Competition Airline does Not pay: Salary Social security Wage-related taxes Sick days and/or hours not flown Pilot Does pay: Social security Wage-related taxes Loss of income for sick days / hours not flown  Significant competitive advantage  Pressure on airlines that don’t use such practices  This distorts competition

9. EESC – Social Dumping, 16/04/2015 Impact on Safety Ghent University on “Atypical employment”: Atypical employment can create “dependency” of the pilot towards the ‘client’ (airline) – which can limit their ability to take independent safety decisions. Atypically employed crew risk prioritizing economic aspects over safety aspects. 46,6% of self-employed pilots disagreed that they can amend instructions of the airline based on e.g. objections regarding flight safety. “A worried pilot is rarely a good or effective pilot” (Aviation Business, 1/2014, p. 22)

10. EESC – Social Dumping, 16/04/2015 Impact on Safety Ghent University on “Atypical employment”: Atypical employment can create “dependency” of the pilot towards the ‘client’ (airline) – which can limit their ability to take independent safety decisions. Atypically employed crew risk prioritizing economic aspects over safety aspects. 46,6% of self-employed pilots disagreed that they can amend instructions of the airline based on e.g. objections regarding flight safety. “A worried pilot is rarely a good or effective pilot” (Aviation Business, 1/2014, p. 22) Zero Hour Contracts (Bogus)self employed Temporary Agency contracts Pay to Fly Tax & social security inspections Am I legal ?

11. EESC – Social Dumping, 16/04/2015 Is it really that Bad? Ghent University study: –Over 1 in 6 pilots atypically employed – that is many thousands –And: Problem is concentrated 40% of young pilots (20-30y.) not directly employed ½ Low Fare Airline pilots not directly employed 4 out of 5 ‘self-employed’ pilots work for LFAs – Ghent: “it’s minutes past midnight”

12. EESC – Social Dumping, 16/04/2015 This is not Inevitable Ghent University study Yes you can ! … be successful without resorting to ‘social & fiscal engineering’

13. EESC – Social Dumping, 16/04/2015 Thank you! https://www.eurocockpit.be