easyJet’s proposed £5.7 billion buyout by Apollo Global Management is drawing scrutiny from the UK travel sector, as a second major trade union steps in to demand guarantees for the airline’s workforce.
Travel Corporation owner Apollo beat rival private equity firm Castlelake in the race to acquire the budget carrier earlier this month. easyJet celebrated its 30th anniversary last year, marking three decades of operations for the airline founded by Stelios Haji-Ioannou. However, the unionized workforce is not happy with the current terms of the deal.
Prospect, which represents thousands of easyJet staff, has come out swinging. The union said Apollo’s current commitments on employment are “welcome” but “limited to 12 months” and are just “intentions rather than binding undertakings.” Prospect is calling for stronger, longer-term security for jobs.
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Unite, which also represents a large number of easyJet employees including cabin crew, echoed these concerns. The union previously stated that Apollo’s “broad statements” about working with staff “needed to be translated into reality.” Unite’s general secretary, Sharon Graham, argued that Apollo’s growth strategy must translate into well-paid, unionized jobs and existing roles must be protected.
The unions are asking for transparency regarding the financing of the deal and how future decisions affecting operations and terms of employment will be made. Prospect has also specifically warned Apollo against breaking up the airline and selling it off piecemeal. It argues that government and regulators should be seeking firm commitments that Apollo intends to build on easyJet’s successful business model rather than dismantle it.
Both unions are focusing heavily on the protection of collective bargaining arrangements. Prospect wants to ensure that the progress achieved through partnership working will not be undermined and that employees will continue to benefit from further improvements in their pay and conditions.
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Prospect also believes employees and their recognized trade unions should be fully consulted on any significant organizational or structural changes arising from the acquisition. “The long-term success of easyJet will depend upon retaining the trust, expertise and commitment of the workforce whose skills and professionalism have helped build the airline’s reputation and success,” the union said.
Unite is taking a similar stance, engaging legal counsel to scrutinize Apollo’s proposals. Regional Coordinating Officer Lindsey Olliver said the union will ensure employees’ terms and conditions, as well as collective bargaining, are protected in accordance with the relevant legislation and agreements.
While Unite acknowledges that protections should remain in place, it emphasizes the power of its members. “However, the true strength of our members lies in their industrial power,” Olliver said. “We look forward to working with Apollo to ensure those protections remain in place going forward.”