Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

Personnel Today

Register
Log in
Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

CoronavirusFinancial wellbeingLatest NewsExecutive payJob creation and losses

Government urged to take equity stake in airlines to protect jobs

by Adam McCulloch 23 Mar 2020
by Adam McCulloch 23 Mar 2020 Photo: Shutterstock
Photo: Shutterstock

As the aviation awaits a government rescue package, easyJet’s decision to go ahead with a £174m dividend payout while calling for state aid during the coronavirus outbreak has attracted strong criticism. 

Two think-tanks, IPPR and Common Wealth, have called for any bailout to include strong conditions for workers and the public, with elements such as job security, action on climate change and a public ownership stake to be factored in.

Their specific demands are: 

  • A permanent public stake to grow public wealth post-crisis
  • Adoption of targets by the sector in line with the Paris Agreement, and clear, transparent plans to meet them
  • Embedded worker rights and collective bargaining over wages and conditions
  • The sector to pay its fair share in taxes
  • No lay-offs, with firms taking full advantage of the Coronavirus Job Retention Scheme

EasyJet’s £174m dividend payout includes £60m for its founder, Stelios Haji-Ioannou, despite the company being among airlines calling for some sort of state support.

The think-tanks accuse many companies within the aviation sector of prioritising shareholders’ interests over long-term success and the financial wellbeing of staff.

Common Wealth’s research show that 50% of easyJet’s pre-tax income was allocated to dividends between 2015 and 2019 and that the holding companies owning Heathrow, Gatwick and Manchester airports regularly paid out more than 100% of the companies’ net income in dividend payments. Many firms were also paying very low tax rates, with Wizz Air, for example, maintaining a tax rate of just 3.5% over the past five years.

Coronavirus crisis

British Airways pilots set for unpaid leave

Acas working from home guidance

How Europe is supporting workers during the crisis

Coronavirus: Four things to consider when encouraging home working

Mathew Lawrence, director of Common Wealth, said the coronavirus crisis demanded powerful action to ensure economic security but it should also look to the future, so the UK could “take collective steps to build a fairer future economy, one that is just and sustainable by design”. He added: “A bailout should build up a permanent public ownership stake, ensure job security, tackle runaway CEO pay and preferential shareholder treatment, and critically, drive a step-change in the sector’s contribution to fighting climate change.”

IPPR associate director for climate, Luke Murphy, said the UK must not slip back into business at usual and that all government support must support “good jobs and a more sustainable economy, rather than executives on big pay packages”. He said: “If the government is going to bail out the airlines, that must mean taking a long-term equity stake and conditions to keep workers employed, a crackdown on runaway executive pay and dividend payouts.”

Easyjet has so far not indicated whether it had asked any of its investors to help the business.

According to The Times, the airline took legal advice on whether it could withdraw or postpone the dividend. Johan Lundgren, its chief executive, told BBC radio that the payment was “something that we are legally obliged to do”. But scores of other stock market-listed companies are withdrawing or reconsidering their annual payouts.

A spokesman for Easyjet said that the airline was not looking for a no conditions taxpayer–funded bailout. Mr Lundgren said: “We are looking for loans on a commercial basis. We are not asking for free money.”

But it is thought by many within the industry that loans are unlikely to stave off the collapse of the companies as their revenues have collapsed to such an extent. To this end, the government is thought to be looking to make an equity stake a key condition of state aid, which means it can set conditions such as protecting workers and pushing for decarbonisation targets to be met.

Individual airlines have called for different types of intervention: while Virgin Atlantic’s management team have called for £7.5bn in state aid to be made available for the industry, IAG boss Willie Walsh has been adamant that the airline does not need state cash.

Talks are continuing with transport secretary Grant Schapps. But for union Balpa, which represents many pilots and cabin staff, there are fears that intervention will come too late for many workers.

Balpa general secretary, Brian Strutton, said: “Airlines can’t survive with no revenue coming in and are already cutting wages and jobs.

“State investment in UK airlines, as other countries are doing, is essential as a matter of urgency before it’s too late.”

Latest HR job opportunities on Personnel Today

Sign up to our weekly round-up of HR news and guidance

Receive the Personnel Today Direct e-newsletter every Wednesday

OptOut
This field is for validation purposes and should be left unchanged.

Browse more human resources jobs

 

Adam McCulloch

Adam McCulloch first worked for Personnel Today magazine in the early 1990s as a sub editor. He rejoined Personnel Today as a writer in 2017, covering all aspects of HR but with a special interest in diversity, social mobility and industrial relations. He has ventured beyond the HR realm to work as a freelance writer and production editor in sectors including travel (The Guardian), aviation (Flight International), agriculture (Farmers' Weekly), music (Jazzwise), theatre (The Stage) and social work (Community Care). He is also the author of KentWalksNearLondon. Adam first became interested in industrial relations after witnessing an exchange between Arthur Scargill and National Coal Board chairman Ian McGregor in 1984, while working as a temp in facilities at the NCB, carrying extra chairs into a conference room!

previous post
Supermarkets create 30,000 jobs to meet surging demand
next post
Coronavirus crisis accelerates digitisation of employment tribunals

You may also like

Court of Appeal rules that Ryanair agency pilot...

9 Jul 2025

Teacher recruitment goals ‘lack coherent plan’

9 Jul 2025

Gregg Wallace sacked amid fresh misconduct allegations

9 Jul 2025

Doctors vote for return to strike action

8 Jul 2025

‘Frustrating’ that NHS Plan has overlooked OH, warns...

8 Jul 2025

Employment Rights Bill set to ban employer NDAs

8 Jul 2025

Young people unprepared for world of work, says...

8 Jul 2025

Empower and engage for the future: A revolution...

7 Jul 2025

Bereavement leave to extend to miscarriages before 24...

7 Jul 2025

One in seven ‘revenge quit’ in latest employee...

7 Jul 2025

  • Empower and engage for the future: A revolution in talent development (webinar) WEBINAR | As organisations strive...Read more
  • Empowering working parents and productivity during the summer holidays SPONSORED | Businesses play a...Read more
  • AI is here. Your workforce should be ready. SPONSORED | From content creation...Read more

Personnel Today Jobs
 

Search Jobs

PERSONNEL TODAY

About us
Contact us
Browse all HR topics
Email newsletters
Content feeds
Cookies policy
Privacy policy
Terms and conditions

JOBS

Personnel Today Jobs
Post a job
Why advertise with us?

EVENTS & PRODUCTS

The Personnel Today Awards
The RAD Awards
Employee Benefits
Forum for Expatriate Management
OHW+
Whatmedia

ADVERTISING & PR

Advertising opportunities
Features list 2025

  • Facebook
  • Twitter
  • Instagram
  • Linkedin


© 2011 - 2025 DVV Media International Ltd

Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+