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Ryanair to recognise pilots unions: Whatever next? A Democrat winning in Alabama?

Boss Michael O'Leary has, for once, chosen pragmatism over pugilism 

James Moore
Chief Business Commentator
Friday 15 December 2017 11:34 GMT
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Ryanair planes should be flying over Christmas as it takes steps to recognise unions
Ryanair planes should be flying over Christmas as it takes steps to recognise unions

Could it be that Santa Claus has ridden Rudolph down to the Ryanair HQ to spread joy and goodwill to all men and women?

The fiercely anti-union airline has said that it is taking steps towards recognising them, or at least the ones representing pilots.

Given the company’s history, and the personality of its chief executive Michael O’Leary, that had seemed about as likely as a Democrat getting elected in Alabama this time last year. We live in interesting times, and while it's probably a bit much to talk about 2017 turning the corner for Ryanair, this is still a positive step.

But what's brought about this change of heart? Mr O’Leary is, after all, one of the most combative chief executives out there, a man who rarely backs away from a fight and is happy to start them.

He positively delights in taking shots not only at competitors but at politicians, regulators, and sometimes even his own customers.

This time, however, he was caught in an unusual bind, faced with strike action across multiple territories, including the airline’s Irish home base. Ryanair thus faced the prospect of massive disruption to Christmas flights booked by those heading for family get togethers or just a bit of winter sun.

Having already taken a battering from having to cancel thousands of flights as a result of a lack of available pilots, this might just have created a tipping point for the business.

Most of Ryanair’s customers have stuck with it through its recent problems. Its financial results show that. The flight cancellation scandal barely dented them.

But even a business like Ryanair can only push so far.

The company had talked of the threatened strike vanishing over the horizon like one of its jets. But it seems like the pilots were made of sterner stuff than it expected.

I still feared they would have to strap themselves in for a long struggle. Mr O’Leary has chosen pugilism over pragmatism in the past.

However, he’s also a smart businessman, who has clearly recognised that taking this step is in the long term best interests of his business.

Some of his investors, those from across the Atlantic in particular, may still baulk. But Ryanair adopting a more enlightened attitude towards staff could bring others, who have red flags on the company, back in.

It remains a highly profitable company, and this won’t change that in the slightest. In fact, its prospects may have been improved.

Unions can work for businesses as well as their members. The pity is so few of them realise that.

Even though the pilots had an unusually favourable set of circumstances when they squared up to Mr O'Leary, their apparent victory might yet encourage a few more workers to offer up a lesson to some of the more backward looking employers. Including perhaps Ryanair's crew?

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