Ryanair agrees 20pc pay rise for UK pilots in bid to ease tensions

Ryanair has agreed a 20pc pay rise for its UK pilots, including those at Stansted who had previously rejected the deal - PA

Ryanair has agreed to raise the pay of its UK pilots by 20pc in a move aimed at smoothing ruptions with its workforce.

The low-cost carrier faced a wave of pilot strikes last year but moved to head them off after conducting a major U-turn by agreeing to recognise unions and discuss pay increases.

This came after it had to scrap thousands of flights this winter in a move aimed at preventing short notice-cancellations.

The Irish company said it has confirmation from each of its 15 UK bases that secret ballots by workers have led to an acceptance of the 20pc pay increase offer. This includes Stansted and five other bases where pilots had previously rejected the company’s overtures.

Ryanair pilots will now be paid 20pc more than rival airlines which use the same 737 aircraft, Norwegian and Jet2, the company claimed.

Discussions with the UK pilot union Balpa are ongoing about the recognition of a unionised workforce.

Ryanair

The announcement sent the airline’s shares up more than 3pc to €16.60 (£14.60), helping the stock recoup some of the lost ground from the second half of 2017. From their 2017 peak in August at €19.35, the shares fell more than a fifth by the end of December to €15.12.

The company hasn’t cleared every hurdle yet though. While the majority of its pilots in Ireland have also agreed to accept the new pay terms, 35pc of its Dublin contingent did not hold a vote on the offer by the January 17 deadline. This means, Ryanair said, they would not receive the rise in January’s payroll, when those who have agreed the terms will get their augmented pay.

Ryanair said it was continuing to negotiate with the union Forsa and Ryanair Irish Pilots Council to try to get these remaining pilots to accept the deal.

Graphic: Routes cancelled by Ryanair over the winter

Forsa, previously known as Impact, said it was in the process of finalising a formal union recognition agreement with Ryanair.

It added it expected management to "reach agreement on recognition procedures quickly so that the parties can move on to negotiate substantial issues around pilots’ pay, working conditions and contractual arrangements".

The company's more friendly approach to negotiations appears to have coincided with the return of Peter Bellew, late last year. The new chief operating officer was a stalwart of Ryanair, working with the carrier from 2006 to 2015, at which point he left to join Malaysia Airlines.