The "clinch" between the German Federal Employment Agency and Malta Air is entering the next round. Both the pilots' union Vereinigung Cockpit and the company headed by David O'Brien are demanding short-time allowance for employees.

The background is a little complicated, because originally the German employment office gave the go-ahead in the form of a notification. However, this was withdrawn on the grounds that it was a foreign company. Malta Air went to court, however and was granted short-time work, at least for the time being. Among other things, the judges decided that the Federal Employment Agency should have been clear from the name alone that the airline could have a foreign connection.

“At a time when other airlines are receiving billions in government aid, the German government should not abandon pilots and crews at Malta Air by denying them social security benefits. The Covid-19 crisis has hit the aviation industry extremely hard and although we have worked hard to keep job losses in Germany as low as possible, the pilots and crews need the support of their government in the form of these services, especially since they all have German taxes and pay social security contributions. Malta Air is one of the largest employers in the aviation industry in Germany with over 1.000 pilots and crew members at our German bases. It is important that the German government is committed to protecting this essential workforce and taking into account the extraordinary challenges the aviation industry is currently facing. Together with the Cockpit Association, we are calling on both the Cologne Employment Agency and the Federal Government to end this discriminatory non-granting of support, ”explains a Malta Air spokesman.

According to Malta Air, the social security contributions and wage taxes for the personnel stationed in the Federal Republic are paid in Germany. This results in the constellation that although work is carried out for a Maltese company, it is in the Federal Republic of Germany. However, the employment office does not know such a constellation and takes the view that only companies that are registered in the German commercial register, for example, are entitled to short-time work. However, this legal opinion leads to various problems that can be illustrated using a large French bank.

Branch offices may be discriminated against

In recent years, the financial institution has merged all of its German subsidiaries into the parent company, which is organized in the form of a French stock corporation (SA). The German activities are bundled in a branch registered in the German register. In principle, branches of foreign companies are to be treated as if they were registered in the commercial register under German law. However, there are numerous differences, because the branch - not to be confused with branches - is largely autonomous, but by no means independent. The balance sheet takes place at the headquarters location, in this case in France. The legal view of the Federal Employment Agency would mean that branches of foreign companies are excluded from short-time work, regardless of the fact that taxes and duties are paid locally, i.e. in the Federal Republic of Germany. German labor law applies to employees.

In the case of Malta Air, the Ryanair subsidiary was initially granted short-time work, but the Federal Employment Agency subsequently withdrew. That pisses both the Carrier and Vereinigung Cockpit on the palm. It is jointly demanded that the employment office should restore the original decision.

In the wake of the Covid 19 crisis, Malta Air negotiated agreements with the Cockpit Association to secure the jobs of pilots and avoid job losses in Germany. This includes measures such as significant temporary wage cuts and reduced working hours, combined with compensation payments that are calculated on the basis of SGB III. The union and the employer expect the Federal Employment Agency to grant short-time work benefits for these employees based in Germany who work in Germany and pay German taxes and German social security contributions.

A rare alliance: VC and Malta Air appear together

“The decision of the German government (in particular the Cologne Employment Agency) to withhold short-time working allowances from Malta Air crews employed in Germany unnecessarily creates further uncertainty for employees in one of the industries hardest hit by the crisis. While this decision was and is the subject of legal disputes before the competent social court, it is the goal of Malta Air to continue the short-time working arrangements including appropriate social guarantees and dismissal protection for their crews at least until December 31, 2021 ", said Malta Air and the VC in a joint broadcast.

“The pilots of Malta Air pay full taxes and social security contributions in Germany. This is why they are fully entitled to short-time work benefits and all other social benefits. We find it unacceptable if the German employment agency could refuse this claim. Italy, France, Portugal, Spain, Great Britain and Belgium have recognized the Ryanair Group as an employer with all rights and obligations and paid corresponding benefits in connection with short-time working to the employees there. The VC negotiated with Malta Air through a VTV (remuneration collective agreement) in particular the protection of German labor law. It is therefore very disappointing to see that the aircrew is now receiving second class treatment from the government. The state should stand on the side of workers in need and not act against their interests, ”said Janis Schmitt, spokesman for the Cockpit Association.