Portugal's top court rules TAP must pay retroactive wages to 1,200 cabin staff

Portugal's top court has ruled that 1,200 TAP cabin crew members on short-term contracts who were laid off and later reinstated as staff should get retroactive pay, a decision that could cost the airline as much as E300m.<br/>The Supreme Court ruling, dated Dec. 12 and seen by Reuters on Tuesday, said TAP must treat the cabin staff as if they had always been on permanent contracts and compensate them with back salaries dating from the start of their employment. The ruling affects flight personnel who were initially hired for one year in 2020 and 2021 but whose contracts were renewed by TAP over the following three years. TAP avoided paying them the much higher salaries it awards to its permanent staff, as well as overtime and other allowances, despite both performing exactly the same tasks, the Supreme Court ruling said. A TAP spokesperson declined to comment on the legal process. The Supreme Court decision has a "unifying" character that sets jurisprudence for future rulings by other courts, in which dozens of cabin crew have already filed lawsuits against TAP. Ricardo Penarroias, who heads civil aviation flight personnel union SNPVAC, told Reuters the ruling could also apply to another several hundred cases over contracts signed in 2006. This would affect a total of 2,000 employees, potentially costing TAP between E200m and E300m as staff pay can easily be double that of short-term workers. Portugal's flag carrier, now immersed in a privatisation process, underwent an extensive restructuring imposed by a Brussels-approved E3.2b rescue plan in 2021.<br/>