LoyaltyLobby
  • News
  • Hotel Promos
    • Accor
    • Best Western
    • Radisson Rewards
    • Choice
    • Fairmont
    • Hilton
    • World of Hyatt
    • IHG Rewards
    • Marriott
    • Ritz-Carlton
    • Starwood
    • Wyndham Rewards
  • Reviews
  • Contact Us
  • Blog View
  •  
LoyaltyLobby
  • News
  • Hotel Promos
    • Accor
    • Best Western
    • Radisson Rewards
    • Choice
    • Fairmont
    • Hilton
    • World of Hyatt
    • IHG Rewards
    • Marriott
    • Ritz-Carlton
    • Starwood
    • Wyndham Rewards
  • Reviews
  • Contact Us
  • Blog View
  •  
LoyaltyLobby
No Result
View All Result
ADVERTISEMENT

Cathay Pacific: French Court Fines Cathay Almost Half a Million EURO For Skirting Labor Laws!

by Sebastian Powell
December 26, 2015
Reading Time: 2 mins read
3

Cathay Pacific has been hit with a christmas present of the special kind. A french court fined the carrier 497,833 EUR for failing to comply with french labor laws concerning the carrier Paris based crews.

CX B777 copy

The fine consists of a newly levied 190,000 EUR penalty adding to an additional 307,833 EUR retained in an Escrow account since proceedings began.

Cathay Pacific just as many other airlines has a part of their crew stationed in foreign cities for various reasons such as they require locals for on board care in specific languages but also pilots (such as in this case).

ADVERTISEMENT

Cathay tried to be sneaky, circumventing payments to the french social security system by not formally recognizing their Paris based staff as employed in France but rather in Hong Kong.

Bloomberg Business reported about it on TV and I found a news piece on their website (access here).

Cathay Pacific Airways Ltd. was fined almost 500,000 euros ($547,000) for what a French court termed irregular pay practices concerning pilots operating European routes for the Hong Kong-based airline.

The penalty was imposed after union complaints that crew stationed at Charles de Gaulle airport weren’t being recognized by Cathay as based in France, allowing it to avoid making proper payments into Ursaaf, an organization that collects social security contributions including state health insurance levies.

The fine comprised a penalty of 190,000 euros that had already been paid, plus a further 307,833 euros that had been held in escrow since the case began, the court in Bobigny, near Paris, said Thursday. Cathay Pacific pleaded guilty though fast-track proceedings.

 “The issues arose from changes to local laws and their interpretation throughout the years” from 1993 when Cathay set up a base in Paris, the carrier said in an e-mailed statement. The company’s arrangements didn’t keep up, it said.

Countries in Europe for the most part have a widespread social security system that requires payment for each employee as part of the welfare benefit distribution these countries have in place. If a company such as Cathay tried to skirt these laws, authorities try to come down hard on them if caught red handed.
Conclusion
These companies have to realize that in Europe there are a different set of rules other than in Hong Kong or wherever else. The same way that financial institutions had to learn the hard way that in the U.S. there are a different set of rules (and penalties) for their industry as well.

Cathay for sure already saves a lot of money by not having to offer this staff adequate housing and benefits in Hong Kong but they tried to squeeze it even more. This is something I’d expect from a Middle East carrier but not Cathay Pacific. All good things come to an end I guess.

Previous Post

Merry Christmas & Seasons Greetings From LoyaltyLobby!

Next Post

Reader Questions: IHG Hotel Booked Using Booking.com, Unexpected Starwood Point Bonus, 15K Points Short Of IHG Spire Elite, Hilton HHonors Gold Fast Track Issue, Eligible IHG Stay & Where To Credit Air France HEL-CDG Flight Operated By Finnair?

Related Articles

Singapore Airlines Awards Temporarily Not Available Using Partners

Reader Question: How To Get Matched By Singapore Airlines? (Cathay Pacific Diamond)

John Ollila
May 18, 2022
2

A LoyaltyLobby reader with a Cathay Pacific status wonders how they could get the status match by Singapore Airlines because...

Airfare of the Day [Premium Economy] CATHAY PACIFIC Singapore to San Francisco from $1,048

Airfare of the Day [Premium Economy] CATHAY PACIFIC Singapore to San Francisco from $1,048

Freddo Zabaleta
April 19, 2022
2

Today’s Airfare of the Day goes to Cathay Pacific and their premium economy excursion round trip fares between Singapore (SIN)...

Cathay Pacific Exempts First & Business Class Passengers From Face Masks While In Lie-Flat Mode

Hong Kong Bans Transit Passengers Through March 15, 2022

John Ollila
February 13, 2022

Hong Kong SAR on Thursday continued the flight ban from eight destinations for an additional month and added Nepal to...

Upgrade Your Travel IQ

Make the most of your travel with our free and daily newsletter with the latest hotel and airline news and promotions.

We do not sell or share email addresses.

ADVERTISEMENT

Trending

Hilton Go Employee And Friends & Family Rate Plans
Hilton Honors

Hilton Go Employee And Friends & Family Rate Plans

July 25, 2021
SAS Pilot Strike Set To Begin On Wednesday & Scandinavian Governments Chip In
SAS - Eurobonus

SAS Pilot Strike Set To Begin On Wednesday & Scandinavian Governments Chip In

June 28, 2022
Who Is 100,000 Hilton Honors Points Giveaway Winner?
Hilton Honors

Who Is 100,000 Hilton Honors Points Giveaway Winner?

June 27, 2022
Russia
IHG Rewards Club

IHG Ceases All Operations In Russia

June 27, 2022
When IHG One Rewards Benefits Are Rolled Out?
Featured

READER EMAIL: Confirming: Ambassador Renewal Extended Diamond

June 26, 2022

Top Categories

  • IHG Rewards Club
  • Marriott Bonvoy
  • Hilton Honors
  • Accor ALL
  • Airfare Of The Day
  • Starwood Preferred Guest (SPG)
  • Hyatt – World of Hyatt
  • American Airlines – AAdvantage
  • Travel News
  • United Airlines – Mileage Plus
ADVERTISEMENT

All Categories

In Case You Missed It

Lufthansa Group Warns Summer Of Hell & A380s Back To Business

Lufthansa Group Warns Summer Of Hell & A380s Back To Business

June 28, 2022
New Coral Executive Lounge Has Opened At Bangkok Suvarnabhumi Airports Domestic Concourse

New Coral Executive Lounge Has Opened At Bangkok Suvarnabhumi Airports Domestic Concourse

June 28, 2022
IHG India & Middle Least Up To 35% Off Summer Sale For Stays Through September 30, 2022 (Book By September 27)

IHG India & Middle Least Up To 35% Off Summer Sale For Stays Through September 30, 2022 (Book By September 27)

June 28, 2022
SAS Pilot Strike Set To Begin On Wednesday & Scandinavian Governments Chip In

SAS Pilot Strike Set To Begin On Wednesday & Scandinavian Governments Chip In

June 28, 2022
Preferred Hotels I Prefer 27,000 Bonus Points For A Stay By December 31, 2022 (Book June 27)

Preferred Hotels I Prefer 27,000 Bonus Points For A Stay By December 31, 2022 (Book June 27)

June 27, 2022
ADVERTISEMENT

Since 2011, we have been helping millions of visitors like you untangle travel loyalty programs for free upgrades, flights and hotel nights.

Facebook Twitter Youtube Instagram

Site Navigation

  • About LoyaltyLobby
  • News
  • Reviews
  • Airfares
  • Contact Us

Hotel Promotions

  • Accor
  • Hilton
  • IHG Rewards
  • Marriott
  • World of Hyatt

Sign Up For Our Newsletter

Our free daily newsletter sends you the latest information on hotel and airline programs.

We do not share or sell email addresses.

Site & Contents ©2011-2022 LoyaltyLobby.com
Terms of Use & Privacy Policy

  • News
  • Hotel Promotions
    • Accor
    • Best Western
    • Choice
    • Fairmont
    • Hilton
    • IHG Rewards
    • Marriott
    • Radisson Rewards
    • Ritz-Carlton
    • Starwood
    • World of Hyatt
    • Wyndham Rewards
  • Reviews
  • Contact Us
  • Blog View
No Result
View All Result

© 2011–2021 LoyaltyLobby.com - Site & Contents