The National Union of Civil Aviation Flight Personnel (SNPVAC) has announced that the Supreme Court of Justice has ruled in favor of flight crew members in a long-standing legal dispute with TAP Air Portugal. This ruling is final, exhausting all of TAP’s appeals, and could have significant financial implications for the airline.
In a statement to its members, SNPVAC explained that the Supreme Court determined that a provision in TAP’s previous Company Agreement, which differentiated between fixed-term and open-ended contract workers in terms of remuneration, was null and void. As a result, crew members with open-ended contracts must now be classified under the ‘CAB I’ category, entitling them to a salary increase.
This decision particularly impacts four crew members who were dismissed as part of TAP’s restructuring plan. The court ruled that these individuals had been improperly hired in the first place and are now entitled to compensation. However, SNPVAC suggests that this ruling could serve as a precedent for hundreds of other employees in similar circumstances.
According to SNPVAC, the financial repercussions of the ruling could be severe, estimating potential costs between €200 million and €300 million for TAP. This far exceeds the airline’s current legal provisions for the issue.
TAP previously stated, in response to inquiries from the PSD parliamentary group, that it had set aside €37.2 million to cover ongoing legal claims related to this matter. If SNPVAC’s calculations are accurate, this provision would fall significantly short of the required amount.
Following the final ruling, SNPVAC has urgently requested a meeting with TAP’s management. The union is seeking clarification on when the payments owed to affected crew members will be processed and how the compensation will be structured.
During the restructuring period between March 2020 and March 2021, TAP saw 1,514 employees leave the company, either due to the pandemic or as part of cost-cutting measures. By early 2024, the airline had rehired 925 workers across various roles and had paid out a total of €1.74 million in compensation.
The Supreme Court’s decision comes at a turbulent time for TAP, as the airline is undergoing a reprivatization process. However, political instability following the fall of the Portuguese government has led to delays in this process. SNPVAC has recently cautioned that any decision regarding TAP’s future must include union participation, warning that otherwise, the deal “won’t work.”
With legal, financial, and political challenges mounting, TAP faces an uncertain road ahead as it navigates compliance with the court’s ruling while preparing for privatization.
