Three sectors facing strikes in Europe

COVID-19 has had a detrimental impact on the global economy, and particularly the unemployment rate.

Companies were forced to lay off at least 207 million people globally as a result of the pandemic, according to data from the International Labor Organization.

The industries bearing the brunt of these lay offs include hospitality, retail and transportation. This is because during COVID-19 flights were grounded as international travel was halted, trains saw a drop in demand with millions across the world stopped commuting, and restaurants and bars were closed to avoid the spread of the deadly coronavirus.

The problem is now, after two years of lockdowns and restrictions, consumer demand for domestic and foreign holidays, business travel and eating (and drinking) out is soaring.

This is putting pressure on the likes of airlines and rail companies to fill their open positions – and quickly – but, of course, this is happening in the ‘Great Resignation’ where workers are rethinking what they want more out of their jobs.

Those who were laid off during the pandemic may not want to return to their previous job with its low pay, bad working hours and limited benefits. While those who have kept their jobs during COVID-19, and in many cases, put their lives at risk by working on the frontline, are frustrated by their working conditions (including their shift patterns and work-life balance), and also want better hours and better pay.

Of course, this challenging labor market is compounded by a looming recession, and sky high inflation. There is a cost of living crisis, and this is pushing people to seek additional support from their employers.

A potential recession means companies, such as airlines and hospitality, remain unsure if the current sky-high demand for flights, hotels and other hospitality services will remain. When consumer’s budgets get squeezed, the first thing to go is luxuries like holidays.

All of this is a perfect storm for industrial action, and further economic disruption.

Let’s take a look inside the strikes that are disrupting Europe – interestingly, they are not all in frontline sectors severely disrupted by the pandemic, suggesting that all employers need to take note and learn lessons.

Are we going to see a ‘summer of discontent’, as the Independent terms it? What can other employers learn from the current industry action to avoid facing strikes or even higher attrition rates in their own workplaces?

Airlines

The staff shortages in the civil aviation sector, and the resulting flight cancellations, have attracted significant media attention.

Over 2,000 flights have been cancelled in Europe for 1 to 15 July period, according to Mabrian’s data. Easyjet cancelled the most flights (1,394), followed by 399 for Turkish Airlines, 145 for Scandinavian Airlines (SAS) and 86 for Wizz. Therefore, it is no surprise that these are some of the airlines also facing strike action.

Staff working for Easyjet in Spain are striking, with the support of the USO union, throughout July. They are demanding a 40% increase in basic pay for cabin crew – this is because, according to USO and reported by the Independent, “Spain’s cabin crew team has the lowest basic income of all European Easyjet hubs” (around €850 lower than elsewhere in Europe).

“If you fly a lot of hours, you end up paying your invoices but reducing your break time and doing a higher number of flight hours.”

Easyjet was also facing strikes in Germany, but it reached an agreement at the end of June with the union Verdi. The deal included sequential wage increases (2.5% in October and then another 2.5% in April 2023 and 3% in October 2023), as well as one-off bonuses for pilots and cabin crew of around €4,500.

The New York Times further reported that SAS, which is the international carrier of Denmark, Norway and Sweden, has actually been forced to file for Chapter 11 bankruptcy following a strike by pilots.

It plans to continue flying but called the strike of pilots “devastating”, and that it would impact flights. The pilot’s strike was primarily about pay, but Reuters reported that “solidarity” with colleagues let go during COVID-19 as another factor.

Other airlines that are facing strike action include British Airways, Ryanair and Brussels Airlines.

For British Airways, its UK workers based out of London Heathrow airport workers have voted to strike – with the support of Unite and GMB unions. The Guardian reported that 700 workers are due to strike, and the dispute is around the airline’s fire and rehire policies during COVID-19 that saw workers rehired on lower pay.

A GMB spokesperson said: “All our members are asking for – and these are primarily low-paid women – is for BA to reinstate the 10% taken from them during the pandemic.” The union added that the 10% bonus offered by BA wasn’t sufficient because senior executive pay had returned to pre-pandemic levels.

Beyond Heathrow airport, British Airways is also facing possible industrial action elsewhere in the UK – including from engineers and call center staff.

Brussels Airlines actually shared that part of the negotiation with unions and striking workers caused them to cancel flights in order to “reduce the workload”, as well as setting up “working groups to continue to work constructively on balanced flight schedules” .

This shows that industrial action isn’t always about pay, often it is about work life balance and not overworking to fill gaps triggered by staff shortages.

Brussels Airline wrote: “​Continuing to work together for a healthy and sustainable future for our company, with a balance between the well-being of our employees and the commercial strength of Brussels Airlines, is our common priority.”

The lesson here is listen to your workers, and do something to make their lives easier. Higher wages may help the situation, but it may not be the entire solution, especially in the long-term.

Railways

Airlines are not the only segment of the transportation section that are dealing with industrial action at the moment.

A few weeks ago, the UK was faced with a nationwide rail (and underground) strike organized by the RMT union. Over three days, 50,000 railway workers across the UK walked out in response to National Rail’s decision to subject staff to multi-year pay freezes, as well as plans to cut thousands of jobs.

There was also another dispute on pensions and job losses on the London Underground network.

RMT secretary Mick Lynch commented: “Railway workers have been treated appallingly and despite our best efforts in negotiations, the rail industry with the support of the government has failed to take their concerns seriously.

“We have a cost-of-living crisis, and it is unacceptable for railway workers to either lose their jobs or face another year of a pay freeze when inflation is at 11.1% and rising.”

While this strike came to an end on 25 June, it looks like the UK faces yet more strike action on its railways this summer.

The Financial Times reported that ASLEF union was organizing a vote at 10 train companies to strike over the summer – while employees had been offered a 2% pay rise, the union is looking for wage increases in line with inflation.

If it goes ahead, it will be the first UK national rail strike in almost 30 years and would be incredibly disruptive to travelers as it could affect 90% of the country’s rail network

The UK is not the only European country facing rail strikes. Italian workers have walked out in a pay dispute, this affected trains, buses and ferries; concerns about workplace safety also played a role in the strikes.

Bloomberg also reported that French workers have walked in a dispute over pay, affecting the SNCF network, but not the Eurostar link between the UK, Belgium and the Netherlands.

Like in the UK, the reason for the strike was pay rises in line with inflation. Thereby suggesting that companies, no matter the sector, need to take seriously employee’s concerns about making ends meet during the looming recession.

Pay rises may be part of the solution, but remember one off bonuses may also help satisfy workers’ concerns, as can other financial support, including more discounts on essential items or access to financial advisers through work.

Legal and professional services

While it may feel like it, it is not only frontline workers in the transport sector that are striking in Europe this summer.

Interestingly, the legal sector in the UK and professional service firm EY & Associés in France are facing industrial action. This really proves that all companies should take employee concerns seriously; strikes are still possible in more white-collar jobs.

Criminal barristers in England and Wales have voted to strike over pay. This comes as the legal sector in the UK is facing high attrition rates  – particularly younger, more junior employees who often earn as little as £12,000 per year, despite working long, often unsociable, hours.

The Criminal Bar Association (CBA) claims that barristers’ real incomes have declined 28% over the past two decades and wages are struggling to keep up with inflation, according to the Financial Times.

As part of the strike, the CBA is demanding the Ministry of Justice backdates legal fees paid through the legal aid scheme. The department had said it would increase legal aid fees to barristers by 15%, but this would be not retrospective.

While EY & Associés is in a stand off with the French CGT-CFTC union, according to Le Monde.

The union is protesting outside the professional service firm’s office in Paris; they are highlighting that there has a decline in real wages in the face of inflation in recent years. They want a 10% pay rise, but also seemed keen to negotiate.

Time will tell whether employers will be able to negotiate a resolution to industrial action occuring across Europe.

Either way, it is very eye opening that despite workers facing a cost of living crisis (and a looming recession), they are choosing to strike (and lose wages) to gain better working conditions.