SEPTEMBER 11TH, 2014

After-Effects of Collective Wage Agreement: European Court of Justice Upholds Opinion of Advocate General

Question of the relation of the after-effects of the Austrian Airlines collective wage agreement to the after-effects of the Tyrolean collective wage agreement remains unanswered
Issue relating to the validity of transfer of flight operations to Tyrolean has not yet been resolved

The European Court of Justice (ECJ) announced its response today to the question posed by the Austrian Supreme Court (OGH) pertaining to the after-effects of the Austrian Airlines collective wage agreement for flight personnel terminated in the year 2012. The ECJ holds the opinion that the term “working conditions stipulated in a collective wage agreement” contained in the EU Transfers of Undertakings Directive also apply to the working conditions of a collective wage agreement terminated during the transfer of operations.

The ECJ did not respond to the second question for which the OGH requested clarification i.e. the relation of the after-effects of the Austrian Airlines collective wage agreement to the after-effects of the collective wage agreement for the Tyrolean flight personnel which was terminated by the trade union. In this regard the ECJ upheld the views voiced by the advocate general. He had already published his opinion on June 3, 2014 but did not respond to the second question.

The validity of the transfer of flight operations to Tyrolean is being assessed within the context of other legal proceedings at the Vienna Labor and Social Affairs Court. However, these legal proceedings were interrupted to await the opinion of the European Court of Justice. Austrian Airlines expects the court proceedings to be resumed due to the decision made by the ECJ, and maintains its legal standpoint that the transfer of flight operations to Tyrolean was lawful.

The strategy being pursued by the management of Austrian Airlines to find a final solution to the conflict by concluding a new collective wage agreement for flight personnel remains unaffected by the decision of the ECJ.


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