THE SOCIAL IMPACT OF THE PROPOSED EU REGULATION ON GROUND HANDLING Christoph Köppchen, Manager Economics 31 May 2012 European Parliament, EMPL Hearing
Feb 25, 2016
THE SOCIAL IMPACT OF THE PROPOSED EU REGULATION ON GROUND HANDLINGChristoph Köppchen, Manager Economics31 May 2012European Parliament, EMPL Hearing
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REGULAR MEMBERS: 180
- Number of Airports operated: 405
- Countries: 46
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National Airport Associations: 8
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GROUND HANDLING – THE NEED FOR A GOOD QUALITY OF SERVICES WHAT IS CONSIDERED AS ‘GROUND HANDLING’?
> Passenger and baggage handling: check-in, baggage delivery
> Freight & Mail handling; Ramp handling (aircraft marshalling and loading)
> Fuel & Oil
> Cleaning, Catering, Aircraft maintenance, etc.
No Ground Handling: Security, PRM, Customs
WELL-PERFORMING GH OPERATIONS ARE KEY!> Complex and interdependent operations at airports
> Quality & costs of GH services = competitive advantage…or disadvantage!
Under-performance: Delays and inefficiencies in the whole network!
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THE GROUND HANDLING MARKET TODAY
A COMPETITIVE MARKET AT EU AIRPORTS> Most GH categories: Fully opened at all EU airports above 2 mio. pax
> 4 categories (ramp, baggage, fuel, freight): Minimum number of 2 handlers at airports > 2 million pax Self-handling: Minimum number of 2 licences at airports > 1 mio. pax
Space, efficiency and safety considerations!
INDEPENDENT HANDLERS DOMINATE THE MARKET
Sources: European Commission, KPMG and ACI EUROPE.
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GROUND HANDLING – THE SOCIAL IMPACT OF THE EXISTING DIRECTIVE 1996/67
GROUND HANDLING = LABOUR-INTENSIVE SEGMENT> 65-80% of GH costs are staff costs
> Competition on price = wages/social conditions
THE EFFECTS OF COMPETITION SINCE 1996> Prices of Ground Handling services: ca. -25%
> Low-margin business in a highly competitive environment
> Pressure on working conditions of staff & quality of service
COLLABORATION OF SOCIAL PARTNERS AT EU LEVEL> Joint Statement of three out of four Social Partners in April 2011
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THE COMMISSION PROPOSAL: IMPACT ON SOCIAL CONDITIONS
FURTHER LIBERALISATION OF THE GH MARKET> Minimum number of three Ground Handlers at airports above 5 mio. pax
> Full opening of the self-handling market
Increased pressure on prices & working conditions
SOCIAL SAFEGUARDS IN THE PROPOSAL> Clarification on the possibility to have national laws on transfer of staff
> But: No obligation for a binding transfer of staff at national level
Insufficient social safeguards in the proposal
TRAINING REQUIREMENTS FOR STAFF> Minimum training of 2 days for staff in Ground Handling
Progress, but one week would be preferable
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THE COMMISSION PROPOSAL – OTHER KEY AREAS
MINIMUM SERVICE STANDARDS> Key to ensure efficient operations at the airport
> Regulation introduces right for airport to set standards
Important improvement, but need to ensure enforcement
COMPETITIVE DISADVANTAGE FOR AIRPORT HANDLERS> Legal separation of airport handlers/CI: Counter-productive
> No sub-contracting for airports, but allowed for all 3rd party handlers
Problematic: No level-playing field for GH services
ADMINISTRATIVE BURDEN> New procedures for Centralized Infrastructure & Reporting
Problematic and disproportionate, added value unclear
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CONCLUSIONS: PRIORITIES FOR THE LEGISLATIVE PROCESS
FOCUS ON QUALITY OF SERVICE OF GH SERVICES> Provide airports with tools to set minimum standards
NO DOGMATIC APPROACH TO MARKET LIBERALIZATION> Keep provisions of existing Directive: Decision at national level!
INTRODUCE STRONGER SOCIAL SAFEGUARDS> Introduce binding transfer of staff in Art.12
> Increase training requirements
TAKE INTO ACCOUNT THE OPINION OF SOCIAL PARTNERS> Improvements to tender procedure, length of licence and social clause
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