The Constitutional Court has rejected TAP’s appeal concerning compensation to cabin crew dismissed during the pandemic. The decision could affect hundreds of crew members, with retrospective payments potentially totaling up to 300 million euros.
The airline still has the option to appeal the decision, though such a move is unlikely to succeed.
If the Constitutional Court’s decision is upheld, TAP will be required to pay the backdated amounts, estimated to reach up to 300 million euros, according to calculations reported by SIC Notícias.
The issue centers on cabin crew laid off under the company’s restructuring plan, who assert that they should be reinstated with full compensation rights. During the restructuring period from March 2020 to March 2021, 1,514 employees left the airline.
In March, the Supreme Court of Justice also dismissed TAP’s claim regarding the reinstatement and compensation of some cabin crew laid off during the pandemic, a situation that could potentially cost the airline millions.
This decision, concerning four crew members, may set a precedent for hundreds in a similar situation. According to SNPVAC, costs for the airline could range between 200 to 300 million euros.
Responding to an inquiry by the PSD parliamentary group early this year, following news of the decision, TAP stated it had set aside “a sum of 37.2 million euros for all ongoing legal actions related to the matter under review”.
In a communication released today, SNPVAC noted that, having become aware of the ruling, it has urgently requested a meeting with the company’s administration to get answers on payments and timelines for those awaiting the decision.
Between March 2020 and March 2021, 1,514 employees left the company amid the pandemic and restructuring strategy.
Up until early this year, 925 workers across various professional categories had been rehired, receiving compensation totaling 1.74 million euros.
The National Union of Civil Aviation Flight Personnel (SNPVAC) indicated in March to Lusa that it is prepared to initiate 700 additional lawsuits regarding reinstatement and compensation for TAP cabin crew on matters dating from 2005 to 2024.
“At present, we have around 700 more processes ready to file. We are only waiting for the Supreme Court’s decision to be finalized, after which we will proceed to court,” stated SNPVAC president Ricardo Penarróias in comments to Lusa, in light of TAP’s results released today.
The airline posted a profit of 53.7 million euros in 2024, marking a 69.7% decrease from the previous year’s net result of 177.3 million, affected by extraordinary labor provisions and foreign exchange losses.
