Home » Business » -title TAP Faces Potential €300M Compensation as Crew File Lawsuits

-title TAP Faces Potential €300M Compensation as Crew File Lawsuits

by Priya Shah – Business Editor

Here’s a ⁣summary of the article, broken down into‍ key ‌points:

* TAP Faces Meaningful Costs: TAP Air Portugal is facing potential costs⁤ of up ‌to ⁤300 million euros due to legal rulings in favor of cabin crew.
* Union​ Action: The National union of Civil Aviation Flight Personnel⁤ (SNPVAC) is preparing to file the first⁤ of 700 legal actions seeking reinstatement and compensation for cabin crew by the ⁣end of⁤ the⁣ year.
* ⁣ Supreme court Ruling: The core of the issue stems from a Supreme‍ Court of Justice (STJ) decision that found‌ TAP improperly ‌dismissed​ cabin crew, notably those with fixed-term contracts. The court ruled these crew members should have been ‍considered permanent employees and are entitled to compensation.
* Discrimination Issue: The Supreme Court and Administrative Court‌ found a rule in TAP’s company⁤ agreement discriminatory,as it provided lower remuneration and slower salary progression for fixed-term contract workers compared‍ to permanent employees.
* Constitutional ‌Court Confirmation: The Constitutional Court rejected TAP’s ⁤appeal, making the‌ ruling final and unchallengeable. This applies to approximately 2,000 crew members laid off during the pandemic and ⁤impacts an additional 2,000 (700 pending filings + 1,300 with existing‌ fixed-term contracts).
* ​ Pandemic ⁢Layoffs: The dispute largely centers around layoffs⁣ and⁣ non-renewal of fixed-term contracts during the COVID-19 pandemic (March 2020 – March 2021), when 1,514 employees left the company.
* previous​ Attempts at Resolution: The union criticizes previous and current governments for not⁣ addressing the issue proactively, leading to escalating costs through court battles.
* Partial Resolution Already: TAP has already readmitted 925 workers and paid 1.74 million euros in compensation, but this is a ⁣small fraction of the potential ‌total​ cost.

In essence, the article details a long-running⁣ legal battle between TAP and its ​cabin crew, culminating​ in a definitive court ruling that could significantly impact the airline’s finances, especially as it⁣ undergoes privatization.

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