Study on employment and working conditions in air transport and airports

304 Pages·2015·3.53 MB·English

by  Rosie Offord

Study on employment DG MOVE, European

Commission
and working conditions

in air transport and
airports

Final Report Our ref: 22757901

October 2015 Client ref: MOVE/E1/2014-92-2

Study on employment DG MOVE, European

Commission
and working conditions

in air transport and
airports

Final Report Our ref: 22757901

October 2015 Client ref: MOVE/E1/2014-92-2

Prepared by: Prepared for:

Steer Davies Gleave DG MOVE, European Commission

28-32 Upper Ground E4 - Internal Market & Airports
London SE1 9PD Rue de Mot 24
B-1049 Brussels
Belgium
[phone]

www.steerdaviesgleave.com
Steer Davies Gleave has prepared this material for DG MOVE, European Commission. This material may
only be used within the context and scope for which Steer Davies Gleave has prepared it and may not be
relied upon in part or whole by any third party or be used for any other purpose. Any person choosing to
use any part of this material without the express and written permission of Steer Davies Gleave shall be
deemed to confirm their agreement to indemnify Steer Davies Gleave for all loss or damage resulting
therefrom. Steer Davies Gleave has prepared this material using professional practices and procedures
using information available to it at the time and as such any new information could alter the validity of
the results and conclusions made.
The information and views set out in this report are those of the authors and do not necessarily reflect
the official opinion of the European Commission. The content herein should therefore not be relied
upon as a statement of the Commission's or the Directorate-General for Mobility and Transport's views.
The European Commission does not accept responsibility for any use made thereof.
Contents
Acknowledgements .................................................................................................................... 12
Executive Summary .................................................................................................................... 13
1 Introduction ..................................................................................................................... 24
Background and the need for this study .................................................................................... 24
This report .................................................................................................................................. 25
2 Methodology.................................................................................................................... 26
Data Collection ........................................................................................................................... 26
Stakeholder engagement............................................................................................................ 26
Quantitative analysis: Data collection ........................................................................................ 27
Data classification and reporting of direct effects ..................................................................... 30
Approach to estimating air transport cluster's direct employment and GVA ............................ 30
Employment data classification and reporting ........................................................................... 31
Labour status definitions ............................................................................................................ 33
Indirect effects methodology ..................................................................................................... 34
3 Setting the scene: traffic trends ........................................................................................ 38
The air transport market: traffic ................................................................................................. 38
4 Direct employment and GVA in the air transport cluster and at airports ............................ 44
Introduction ................................................................................................................................ 44
Direct employment in air transport and airports ....................................................................... 44
Air transport cluster: direct employment and GVA .................................................................... 48
Air transport ............................................................................................................................... 53
Airport operation and handling .................................................................................................. 60
Building and repairing of aircraft ................................................................................................ 65
Renting and leasing of aircraft .................................................................................................... 69
Travel agencies and tour operators ............................................................................................ 72
Regulatory administration .......................................................................................................... 75
Activities of extraterritorial organisations and bodies ............................................................... 77
Operation of flying schools ......................................................................................................... 79
Airport-related activities cluster: direct employment and GVA ................................................. 81
Estimating direct employment in airport-related activities ....................................................... 81
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Air transport activities inside airports (sub-cluster (b)): direct employment and GVA .............. 85
Other airport-related activities (sub-cluster (c)): direct employment and GVA ........................ 86
Summary ..................................................................................................................................... 88
5 Indirect employment ........................................................................................................ 91
Introduction ................................................................................................................................ 91
Methodology .............................................................................................................................. 91
Results ......................................................................................................................................... 92
Summary ..................................................................................................................................... 98
6 Direct employment patterns ............................................................................................ 100
Introduction .............................................................................................................................. 100
Employment profile trends ....................................................................................................... 100
Labour cost and income developments ................................................................................... 117
Air Traffic Management Cost-Effectiveness (ACE) case study .................................................. 121
Productivity and value added ................................................................................................... 123
Health and safety ...................................................................................................................... 129
Employee perceptions of working conditions .......................................................................... 131
7 Working conditions ......................................................................................................... 132
Introduction .............................................................................................................................. 132
Types of employment arrangements ....................................................................................... 133
Incomes and training opportunities ......................................................................................... 159
Union membership and other social dialogue issues ............................................................... 163
Health and safety at work ......................................................................................................... 175
Outsourcing .............................................................................................................................. 181
Multiplication of operational bases .......................................................................................... 189
Competition and growth .......................................................................................................... 202
Case study overviews................................................................................................................ 204
8 Conclusions ..................................................................................................................... 211
Main findings ............................................................................................................................ 211
Recommendations .................................................................................................................... 215

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Appendices
A Data collection & classification
B Employment and GVA tables
C Airport case studies
D Airline case studies
E List of abbreviations

Figures
Figure 2.1: Summary of Stakeholder Participation ..................................................................... 27
Figure 2.2: Approach to determining in-scope employment (using NACE classification levels) 30
Figure 2.3: Air transport cluster and airport related activities ................................................... 32
Figure 2.4: Input-Output Table processing – illustration ............................................................ 35
Figure 3.1: Passenger processed at EU airports, EU28 ............................................................... 38
Figure 3.2: Freight traffic, EU28 .................................................................................................. 39
Figure 3.3: Market share on intra-EU routes, 2005-2013 .......................................................... 40
Figure 3.4: Market share on Extra-EU routes, 2005-2013 .......................................................... 42
Figure 3.5: Numbers of scheduled airlines 2005-2013 ............................................................... 43
Figure 4.1: Direct employment in air transport and airports, EU28, 2013* ............................... 46
Figure 4.2: Direct employment in air transport and airports, EU28, 2008* ............................... 47
Figure 4.3: Direct employment (persons employed) in the air transport cluster, EU28, 2000-
2013 ............................................................................................................................................ 49
Figure 4.4: Direct employment index (persons employed) in the air transport cluster,
transportation and storage and the economy as a whole, EU28, 2000-2013 ............................ 50
Figure 4.5: Direct GVA in the air transport cluster, EU28, 2000-2013 ....................................... 51
Figure 4.6: Direct GVA in the air transport cluster, transportation and storage and the
economy as a whole, EU28, 2000-2011...................................................................................... 52
Figure 4.7: Direct passenger and freight air transport employment (persons employed, NACE
51), 2000-2013 ............................................................................................................................ 54
Figure 4.8: Direct passenger air transport employment (persons employed, NACE 51.1) by
Member State, 2008 and 2013 ................................................................................................... 55
Figure 4.9: Direct freight air transport employment (persons employed, NACE 51.21) by
Member State, 2008 and 2013 ................................................................................................... 57
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Figure 4.10: Direct GVA air transport (NACE 51), 2000-2013 ..................................................... 58
Figure 4.11: Direct GVA air transport (NACE 51), by Member State, 2011 ................................ 59
Figure 4.12: Direct airport operation and handling employment (persons employed, NACE
52.23), EU28, 2000-2013 ............................................................................................................ 61
Figure 4.13: Direct airport operation and handling employment (persons employed, NACE
52.23) by Member State, 2008 and 2013 ................................................................................... 62
Figure 4.14: Direct GVA airport operation and handling (NACE 52.23), 2000-2013 .................. 63
Figure 4.15: Direct GVA airport operation and handling (NACE 52.23), by Member State, 2011
.................................................................................................................................................... 64
Figure 4.16: Direct building and repairing of aircraft employment (persons employed, NACE
30.3 & 33.16), 2000-2013 ........................................................................................................... 67
Figure 4.17: Direct GVA Building and repairing of aircraft (NACE 30.3 & 33.16), 2000-2013 .... 68
Figure 4.18: Direct building and repairing of aircraft employment (persons employed, NACE
77.35), 2000-2013 ....................................................................................................................... 70
Figure 4.19: Direct GVA Renting and leasing of aircraft (NACE 77.35), 2000-2013 ................... 71
Figure 4.20: Direct travel agencies and tour operators employment (persons employed, NACE
79.1), EU28, 2000-2013 .............................................................................................................. 73
Figure 4.21: Direct regulatory administration employment (persons employed, NACE 84.13),
EU28, 2000-2013 ........................................................................................................................ 76
Figure 4.22: Direct extraterritorial organisation employment (persons employed, NACE 99.00)
EU28, 2000-2013 ........................................................................................................................ 78
Figure 4.23: Direct operation of flying schools employment (persons employed, NACE 85),
2000-2013 ................................................................................................................................... 80
Figure 4.24: Direct employment other airport-related activities employment (persons
employed), 2000-2013................................................................................................................ 87
Figure 4.25: Direct employment in air transport and airports, EU28, 2013 ............................... 88
Figure 4.26: Direct employment in air transport and airports, EU28, 2008 ............................... 89
Figure 5.1: Indirect employment estimates (2011) .................................................................... 93
Figure 5.2: Indirect (domestic) employment and employment sourced from outside as a
proportion of direct employment in the air transport cluster, EU27 and Belgium, 2011 .......... 95
Figure 5.3: Employment estimates including employment sourced from outside the EU (2011)
.................................................................................................................................................... 96
Figure 6.1: Passenger air transport (NACE 51.1) % persons directly employed by gender, EU28,
2008-2013 ................................................................................................................................. 101
Figure 6.2: Passenger air transport (NACE 51.1) % persons directly employed by age, EU28,
2008-2013 ................................................................................................................................. 101
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Figure 6.3: Freight air transport (NACE 51.21) % persons directly employed by gender, EU28,
2008-2013 ................................................................................................................................. 103
Figure 6.4: Freight air transport (NACE 51.21) % persons directly employed by age, EU28, 2008-
2013 .......................................................................................................................................... 103
Figure 6.5: Airport operation and handling (NACE 52.23) persons directly employed by gender,
EU28, 2008-2013 ...................................................................................................................... 104
Figure 6.6: Airport operation and handling (NACE 52.23) persons directly employed by age,
EU28, 2008-2013 ...................................................................................................................... 105
Figure 6.7: Number of pilots, 000s, EU28, 2012-2013 .............................................................. 106
Figure 6.8: Number of travel attendants and stewards (i.e. cabin crew), 000s, EU28, 2012-2013
.................................................................................................................................................. 107
Figure 6.9: Persons employed by airlines, EU28, 2013 ............................................................. 107
Figure 6.10: Ground-handling by occupation, 000s, EU28, 2013 ............................................. 108
Figure 6.11: Fixed term contracts in air transport (percentage of persons employed, NACE 51)
EU28, 2008-2013 ...................................................................................................................... 109
Figure 6.12: Fixed term contracts in air operation and handling (percentage of persons
employed, NACE 52.23) EU28, 2008-2013 ............................................................................... 110
Figure 6.13: Part-time employment in air transport (percentage of persons employed, NACE
51) EU28, 2008-2013 ................................................................................................................ 111
Figure 6.14: Part-time employment in airport operation and handling (percentage of persons
employed, NACE 52.23) EU28, 2008-2013 ............................................................................... 111
Figure 6.15: Atypical working hours (percentage of persons employed) EU28, 2008-2013 .... 112
Figure 6.16: Self-employment (persons employed, 000s) EU28, 2008-2013 ........................... 113
Figure 6.17: Temporary agency workers (persons employed, 000s) EU28, 2008-2013 ........... 114
Figure 6.18: Types of relation with current airline amongst pilots .......................................... 115
Figure 6.19: Types of direct employment contracts amongst pilots ........................................ 115
Figure 6.20: Skill level of persons employed in air transport (NACE 51) EU28, 2000-2013 ..... 116
Figure 6.21: Skill level of persons employed in airport operation and handling (NACE 52.23)
EU28, 2000-2013 ...................................................................................................................... 117
Figure 6.22: Labour cost per employee, EU28, 2000-2013 ...................................................... 118
Figure 6.23: Average income by sector, € nominal, EU28, 2005-2013..................................... 119
Figure 6.24: Income by sector, EU28, 2010 .............................................................................. 120
Figure 6.25: Airline labour costs per person employed, € nominal, 2008-2013 ...................... 121
Figure 6.26: Persons employed in air traffic control, 000s, EU28, 2002-2012 ......................... 121
Figure 6.27: Average employment cost per employee for ATCOs, €000s nominal, EU28, 2002-
2012 .......................................................................................................................................... 122
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Figure 6.28: Traffic growth (EU airline passengers and flights) vs. direct employment and GVA
for air transport ........................................................................................................................ 124
Figure 6.29: GVA per person employed for overall economy and transportation and storage,
2000-2011 (index 2000=100) .................................................................................................... 125
Figure 6.30: Productivity drivers estimate: employment in air transport 2000-2013 ............. 126
Figure 6.31: Traffic growth (total passengers and flights) vs. direct employment and GVA for
airport operation and handling ................................................................................................ 127
Figure 6.32: Traffic growth (total passengers and flights) vs. direct employment and GVA for
the air transport cluster ............................................................................................................ 128
Figure 6.33: Health and safety information at work, 1995-2010 ............................................. 130
Figure 6.34: Trends in employee health, 2005-2013 ................................................................ 130
Figure 6.35: Employees perceptions of working conditions, 1995-2010 ................................. 131
Figure 7.1: Relationship between airline and self-employed pilots engaged via a temporary
agency ....................................................................................................................................... 134
Figure 7.2: Airport stakeholder responses: perceived trend in employment arrangements from
2005 to 2014. ............................................................................................................................ 145
Figure 7.3: Airport stakeholder responses: perceived trend in employment arrangements from
2005 to 2014 amongst terminal staff. ...................................................................................... 146
Figure 7.4: Airport stakeholder responses: expected trend in employment arrangements over
next 5 years. .............................................................................................................................. 146
Figure 7.5: Airline stakeholder responses: perceived trend in employment arrangements from
2005 to 2014 amongst flight crew. ........................................................................................... 149
Figure 7.6: Airline stakeholder responses: perceived trend in employment arrangements from
2005 to 2014 amongst cabin crew. .......................................................................................... 150
Figure 7.7: Stakeholder responses: perceived trend in wages and remuneration by profession
from 2005 to 2014. ................................................................................................................... 159
Figure 7.8: Stakeholder responses: perceived trend in wages and remuneration by worker
profile from 2005 to 2014. ....................................................................................................... 160
Figure 7.9: Stakeholder responses: perceived trend in training opportunities by profession
from 2005 to 2014. ................................................................................................................... 160
Figure 7.10: Airport stakeholder responses: coverage of collective labour agreements amongst
staff in 2014. ............................................................................................................................. 166
Figure 7.11: Airport stakeholder responses: level of collective agreements in 2014. ............. 167
Figure 7.12: Airport stakeholder responses: unionisation amongst staff by profession in 2014.
.................................................................................................................................................. 167
Figure 7.13: Airport stakeholder responses: perceived trend in unionisation from 2005 to 2014.
.................................................................................................................................................. 168
October 2015 | 9
Figure 7.14: Airline stakeholder responses: unionisation amongst staff by profession in 2014.
.................................................................................................................................................. 169
Figure 7.15: Airline stakeholder responses: perceived trend in unionisation from 2005 to 2014.
.................................................................................................................................................. 170
Figure 7.16: Airline stakeholder responses: level of collective agreements in 2014. .............. 171
Figure 7.17: Stakeholder responses: perceived trend in accidents and incidents from 2005 to
2014. ......................................................................................................................................... 176
Figure 7.18: Airport stakeholder responses: perceived trend in accidents and incidents by
employment arrangement in 2014. .......................................................................................... 176
Figure 7.19: Airport stakeholder responses: perceived trend in health and safety training by
employment arrangement in 2014. .......................................................................................... 177
Figure 7.20: Airline stakeholder responses: perceived trend in accidents and incidents by
employment arrangement in 2014. .......................................................................................... 178
Figure 7.21: Airline stakeholder responses: perceived trend in health and safety training by
employment arrangement in 2014. .......................................................................................... 178
Figure 7.22: Stakeholder responses: perceived trend in outsourcing from 2005 to 2014. ...... 183
Figure 7.23: Stakeholder responses: expected trend in outsourcing over next 5 years. ......... 183
Figure 7.24: Stakeholder responses: perceived difference in aspects of employment between
Member States in 2014. ........................................................................................................... 198
Figure 8.1: Direct employment in air transport and airports, EU28, 2013 ............................... 212
Figure 8.2: Indirect employment estimates (2011) .................................................................. 214

Tables
Table 4.1: Eurostat cross-checks................................................................................................. 84
Table 4.2: Direct employment in air transport cluster activities inside airports (sub-cluster (b)),
EU28, 2013 .................................................................................................................................. 85
Table 4.3: Direct GVA in air transport cluster activities inside airports (sub-cluster (b)), EU28,
2013 ............................................................................................................................................ 86
Table 4.4: Direct employment in other airport related activities (sub-cluster (c)), EU28, 2013 87
Table 4.5: Direct GVA in other airport-related activities (sub-cluster (c)), EU28, 2013 ............. 88
Table 4.6: Summary of direct employment in air transport and airports, 2000-2013 ............... 90
Table 5.1: Employment and output multipliers .......................................................................... 92
Table 5.2: Employment sensitivity of non-aviation sectors........................................................ 93
Table 5.3: Comparison of indirect output multipliers ................................................................ 94
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